Grains Report - Wednesday, April 21

Overnight News: The Delta should get mostly dry conditions. Temperatures should be below normal.

Chart Analysis: Trends are down with objectives of 1267, 1264, and 1246 May. Support is at 1279, 1276, and 1273 May, with resistance at 1300, 1304, and 1309 May.

CORN AND OATS

General Comments: Corn closed higher on what appeared to be speculative buying based on ideas of strong demand and long-term weather outlooks for warm and dry weather west of the Mississippi River. It is currently very cold in the US and some recently planted Corn could get hurt or at least be very slow to emerge. There are also concerns about the production potential for the Safrinha crop in Brazil as growing areas have been warm and dry. Oats were higher. Chinese demand had been strong until recently and it looks like they need the Corn. Prices inside China for Corn remain extremely high. It is drier in central and parts of northern Brazil, and farmers have finally harvested the Soybeans area and planted the Winter Corn. The Winter Corn crop progress is well behind normal and it has been dry in major growing areas. Some showers are possible in southern areas this week. Showers could also fall in the north for some temporary support to Corn in both areas, but much more and more general rains are needed. Demand for US Corn has been coming at a stronger pace than estimated by USDA and it looks like US ending stocks can be significantly less than current projections by the end of the year.

Overnight News:/

Chart Analysis: Trends in Corn are up with objectives of 614 May. Support is at 601, 595, and 589 May, and resistance is at 614, 620, and 626 May. Trends in Oats are up with objectives of 391, 409, and 457 May. Support is at 384, 380, and 379 May, and resistance is at 391, 400, and 402 May.

SOYBEANS

General Comments: Soybeans and the products were higher. Soybean Oil was sharply higher. There is still crush demand and export demand even though the demand is less now than before and the market thinks the US is going to run out of Soybeans unless demand can be rationed with high prices.

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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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