Wheat Market Recap
Mar Wheat finished + 4 at 593, 10.50 off the high and + 3 from the low.
Jul Wheat closed + 4.50 at 622.25. This was + 0.0075 from the low and 9 off the high.
Mar Wheat closed slightly higher on the day but near 0.10 off of the early highs.
Dec Wheat closed unchanged on the day, and Kansas City Wheat closed lower on the day after an early bounce.
The strong rise in the US stock market, and a sharp set-back in the USD helped to support the market early in the session, but there was not much in the way of new buying or expected fund Short-covering and the market drifted lower for much of the session.
Thoughts that the market is very oversold after last week's sharp break plus talk that this afternoon's weekly COT update could show a record net Short position from fund traders helped to provide underlying support.
Weekly export inspections came in at 15.4-M bu which was right in line with trade expectations and compares with 18.9-M bu necessary each week to reach the USDA projection.
Iraq is tendering to buy 50,000 tons of Wheat.
Corn Market Recap
Mar Corn finished up 8.50 at 598.50, 4.50 off the high and + 5.50 from the low.
May Corn closed up 8.25 at 605.50. This was + 5.75 from the low and 4.25 off the high.
The early rally for Mar Corn matched the overnight highs at 603 and after a burst of fund buying early, the market drifted back down to close under 600 for the 3rd session in a row.
The rise in energy prices and a strong tone to cash markets helped to support solid gains early in the session Monday.
Taiwan is tendering to buy 23,000 tons of US Corn and 12,000 tons of US Soybean.
Weekly export inspections came in at 30.6-M bu which was near the high end of trade expectations and compares with 34.6-M bu necessary each week to reach the USDA projection.
Crop conditions remain favorable in South America, but some areas of Southern Brazil and Argentina could show some stress if this week's expected rains do not show good coverage.
Jan Rice finished down 0.09 at 14.145, 0.275 off the high and equal to the low.
Soybean Complex Market Recap
Jan Soybean finished up 14.50 at 1121, 6.25 off the high and + 7 from the low.
Mar Soybean closed up 15.25 at 1131. This was + 8.50 up from the low and 5 off the high.
Jan Soymeal closed up 6.2 at 289.2. This was + 4.9 from the low and 0.3 off the high.
Jan Soybean Oil finished up 0.71 at 49.15, 0.21 off the high and + 0.49 from the low.
Jan Soybean's rise to near the overnight highs early in the session but failed to see much in the way of follow-through buying above 1125 and saw mostly choppy trade below this level for much of the session.
The sharp fall in the USD combined with strength in equity and energy markets helped to support a more positive tone for commodity markets in general Monday.
Soybean priced in a Bearish Global economic outlook late last week and the shift to a little brighter outlook has helped to support.
Thoughts that China may be a stronger buyer for the coming year than the USDA anticipates helped to support as well. Taiwan is tendering to buy 23,000 tons of US Corn and 12,000 tons of US Soybean.
Weekly export inspections came in at 41.4-M bu which was right in line with trade expectations and compares with 23-M bu necessary each week to reach the USDA projection.
The market opened with active volume, but volume was considered light with choppy trade for much of the day.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.