For the week ending 10/17/14
Corn up 7 ¼ - cent
Soybeans up 19 ¼ - cents
Mpls wheat up 17 ¼ - cents
Crude oil down $3.07 - BL
Dow down 128- points
US Dollar – down 82
10/17/14
Dec 14 corn 348 -4 ¼
Nov 14 Soybeans 951 ¾ - 14 ¾
Dec 14 Mpls wheat 570 ½
Mar 15 corn 361 ¼ - 4
Jan 15 Soybeans 959 ¾ - 14 ½
Mar 15 Mpls wheat 575 ¾
May 15 Corn 370 – 4 ¼ May 15 Soybeans 968 -13 ¾
May 15 Mpls wheat 583 ½
The grain markets were volatile last week but nothing like the outside markets. All the equity markets continued
their slide lower along with the energy markets and the US Dollar. The equity markets have been enjoying a rally to
record highs and many analysts believe a correction was due. The US dollar had also gained about 9% since May and
was also due for a correction or at least a pause in the action.
Crude oil dropped to its lowest level since June of 2012 and blended gasoline futures dropped to the lows of 2010.
The USDA harvest progress report estimated that 24% of the corn of harvested vs. 43% average. This would suggest
that approximately 11- billion bu. are still in the field. They also said 40% of the beans were harvest vs. 53% average.
This would projected that 2.36 bil bu. of soybeans have yet to be harvested.
Ethanol production was also at its lowest level since March along with the ethanol stocks.
The estimate for Argentine soybean acres was raised at the expense of corn acres. Soybean planting in Brazil is about
155 complete. In several areas planting has been stopped due to dry conditions. Unlike the US, they have a huge
planting window so there is no rush. Hummm- They must never of heard the saying “plant in the dust and the bins
will bust”.
Informa lowered their estimate of 2015-16 corn acres from 88.5 to 87.7 mil acres. As might be expected they raised
there projected bean acres from 87.7 to 88.5.
Lower prices have brought buyers to the table and last weeks USDA sales for corn were huge. Soybean sales were also
very good. Wheat sales were above the previous week, but below expectations.
WEEKLY CONTINUATION CHART OF CORN
Prices closed higher for the week. Prices reached the resistance level at 3.52-3.69, but did not close above it. Nearby
support is a 3.34 and long term support at 3.00.
DECEMBER CORN
Nearby support is a range between 3.34 and 3.46. Long term support is still down at 3.06 -3.12. Resistance is up at
3.62.
WEEKLY CONTINUATION CHART OF CORN USING THE DECEMBER CONTRACT ONLY
Prices closed higher for the week. They also traded close to the resistance level of 3.60, but did not close above it.
DEC 2015 CORN
Resistance is now up at 4.06 and support is 3.90.
WEEKLY CONTINUATION CHART OF SOYBEANS
Prices closed higher for the week after testing the 9.13 support line. Resistance is still up at 10.00.
NOVEMBER SOYBEANS
Prices closed the gap at 9.56. Long term support is still at 8.99 and resistance is up at 9.81-9.90.
WEEKLY PRICE OF SOYBEANS USING THE NOVEMBER CONTRACT ONLY
Prices closed higher for the week and above the 9.30 level which is now support. Resistance is up at 9.85 -10.05.
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