Grain Markets Commentary
Technical selling yesterday gave back Thursday’s gains
Overnight- Corn, soybeans and wheat futures are slightly higher.
The May corn contract was rejected by resistance near 4.50 and without any buyers showing up Sunday night or Monday morning to provide any follow-through rally the sellers took back control.
On the downside we are watching 4.20 for support in May and 4.63 for the December contract.
US rains are putting pressure on the markets as well.
NOAA reported that the US has the smallest area of drought in 4 years.
We are having trouble finding bullish news for the grain and oilseed markets after traders have reversed last week’s rally.
New crop contracts don’t have any risk premium built in for spring so we may see some support down here in the 4.60’s and 11.70’s.
Bottomline
The market has rejected the rally from last week and likely thinks there will be more corn acres by June 30th final acres report. Pair that with wide spread rain event and the bulls are having trouble right now.