Grains Report - Tuesday, March 9

CORN AND OATS:  

General Comments: Corn and Oats were higher on what was called follow-through buying. Export demand has started to fall as the South America main crop is expected to be harvested soon. The big export crop is the Winter Corn crop whish is still being planted. Chinese demand had been strong until recently and it looks like they need the Corn either way. Prices inside China for Corn remain extremely high. It is raining in central and parts of northern Brazil in the last week, but farmers were still able to harvest some of the Soybeans area and plant some of the Winter Corn around the precipitation. The Winter Corn crop is on a very slow pace to be planted and progress is well behind normal. Argentina is now drier and Corn in Argentina could be stressed. Southern Brazil got showers. The main crop harvest has started in parts of Brazil, but progress will be slow due to the late planting dates due too dry conditions earlier in the year. The second crop of Corn planting is also being delayed and yield estimates for South American Corn have been reduced.

Overnight News:

Chart Analysis: Trends in Corn are mixed. Support is at 541, 533, and 529 May, and resistance is at 556, 558, and 577 May. Trends in Oats are up with objectives of 412 May. Support is at 383, 373, and 368 May, and resistance is at 400, 403, and 406 May.

SOYBEANS 

General Comments: Soybeans and Soybean Oil closed higher and Soybean Meal closed a little lower. Selling came on ideas that the impending Brazil harvest will kill current demand for US Soybeans. Demand was improved last week in the weekly export data and the US has now sold 98% of its target amount of Soybeans for the marketing year. The Brazil harvest has been delayed due to late planting dates early due to dry weather and now too much rain that has caused harvest delays and some quality problems in the north as well. Rains are coming to an end in some areas so harvest activities have increased but the harvest remains very slow overall. China has been buying for this year and next year here but now mostly in South America.US internal demand has also been strong as seen in the crush data. The strong demand for exports and for domestic use means there is little room for error and that the US could even come close to running out of Soybeans to sell.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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