This week's Grain Farmers of Ontario market commentary suggests soybeans are the only one of the three main grains still showing all negative chart indicators.
Analyst Marty Hibbs thinks it will take a lot of work to turn the soybean trend to the upside.
He's standing by his earlier view that the current trading range will run between the 9 dollar support level and the 10.75 resistance level until something significant happens.
The GFO's corn charts are positive for both the daily and weekly periods while the long term indicator is still negative.
Hibbs still thinks the March 31st USDA report will set the tone for the next few months for both corn and soybeans.
He figures some jockeying of positions ahead of that report may have been behind a volatile swing in the May wheat contract over the past week.
The short term wheat chart indicators are neutral but the main trend continues to be down.
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Grain Farmers of Ontario Market Commentary: by Marty Hibbs
CORN: Corn had a positive week, with a 30 cent range from the low of $3.67 last Wednesday the 18th to today’s high of $3.96, before settling near the highs at $3.94. On the charts: As of today, March 25 we have 2 buy signals confirmed which is positive for both the daily and weekly charts. The long term indicator is still negative and confirms the main trend is still down. The March 31 United States Department of Agriculture (USDA) report should set the tone for the next few months.
SOYBEANS: On the charts: Soybeans is the only grain of the three that is still showing all indicators to be negative. It will take a lot of work to turn the soybean trend to the upside. I will continue to view the $9 support level and the $10.75 resistance level as the current trading range until I am given reason to think otherwise. The USDA report due out on March 31 should give us a better picture of future prices.
WHEAT: The European Union will retain its title as the world's top wheat exporter next season, Canadian grains giant CWB said, citing constraints to competition from the former Soviet Union and the U.S.. EU wheat exports will, backed by a decent harvest and a soft euro, hit a record 32.35m tonnes in 2015-16, according to the CWB, Canada's former grain export monopoly. On the charts: The May wheat contract had a volatile swing in the past 5 trading sessions as the May contract closed the session on March 18 at $5.10 and proceeded higher over the next week to an intra-day high of $5.40 ½ on March 21 only to settle back today March 25 at $ 5.18. This action could be attributed to the jockeying of positions ahead of the March 31 USDA report. Meanwhile the short term indicators are neutral but the main trend is still down.
