Pull back or turnover?
So far this week: December Corn +11.75 cents, November Beans +18.75 and September Wheat +24.25.
If you looked at the weekly gains with no context, one would think it has been a good week for prices so far. It is a good week so far but when one knows that wheat is 57 cents off this week’s high and corn 23 cents off, it causes concern that there is more downward pressure to come. The front end of Soybean was the upside performer today with August adding 40 cents and September adding 21 cents. November soybeans finished unchanged as the spread action was a combination of the weather and first notice day approaching for the August contract. Wheat backed off with lack of new bullish headlines out of the Black Sea and strong yield estimates (48.1 bu/acre) coming out of the Dakota wheat tour. Wheat is dragging corn along as it pulled corn higher on Monday and pulled it lower today. We will see if the news cycle in Ukraine stays quiet tonight and if so, we could see more selling pressure in wheat and corn tomorrow. For tonight, we will use 5.38 & 14.05 for support and 5.62 & 14.30 for resistance.