Grain Markets Commentary
Producer Price Index came in higher than expected this morning
Overnight- Corn and wheat traded lower while soybeans slightly higher.
The Producer Price Index for last month was 0.3% higher than expected month over month and 0.5% higher than expected year over year.
Interest rates rallied and stocks broke on this news. We will have to monitor the fallout and if the market pushes back the rates cut expectations later in the year.
Looking at the charts: Corn should find support around 4.32 and resistance at 4.46.
Soybeans need to settle above 12.02 in May for the bullish sentiment to grow. 11.75 is a major support level.
Bottomline
We are looking at a quick planting pace unless the weather turns to a wet trend and prospects for large corn acres loom as well as a growing old crop soybean balance sheet has us set up for tough situation for rallies. Let’s keep an eye on the prize and take advantage of any opportunities on any further rallies.