Analyst Paul Ebeling of www.livetradingnews.com takes a look at Corn, Soybean and Wheat Prices

Closing Grain Comments Soybeans, Wheat impress Wednesday

Soybean and Wheat contracts were sharply higher Wednesday on solid support from both commercial and noncommercial traders. Corn, on the other hand, had another disappointing day on a lack of interest from either side of the market.

Wheat futures enjoyed gains throughout today’s session and ended roughly 15 to 16 cents higher in Chicago, mostly 8 to 13 cents higher in Kansas City and mostly 7 to 13 cents higher in Minneapolis. This represented a close in the upper half of today’s trading range. Wheat futures benefited from improved outside markets compared with Tuesday’s broad risk aversion thanks to a reminder of tightening Wheat stocks.

Dec Corn futures finished 1.5 cents lower and the Mar contract was steady while deferred futures settled fractionally to 5.25 cents higher. Corn futures lacked buying interest Wednesday due to a lack of Bullish news, but spillover support from Soybean and Wheat kept the market from sliding. While Corn supplies are tight, traders are concerned about the demand side of the market.

Soybean futures ended widely mixed. Nov through Mar futures closed 16.25 to 17.25 cents higher. May and July futures were 4.5 to 8.75 cents higher, and far-deferred contracts were down 0.075 to 3.5cents. Soymeal also ended mixed, with Soyoil stronger. Early support in the Soybean pit was tied to fresh demand news, as USDA announced 105,000 MT of Soyeans were sold to unknown destinations for MY 2012-13.

Lean Hog futures settled steady to 35 cents higher following a quiet and choppy day of trade. The profit-taking that weighed on lean Hog futures the past 2 sessions dried up today, allowing the market to post modest gains. While traders are concerned the cash and product markets are putting in a short-term Top after a strong, contra-seasonal rally, Dec futures are trading at a 6.78 discount to the cash index.

Live Cattle futures trimmed early gains and finished 5 to 22.5 cents higher. Futures were supported by ongoing strength in the boxed Beef market, which has traders anticipating $1 to $2 higher cash Cattle trade compared with last week’s $127 trade. However, with packers’ margins in the Red, they are hesitant to increase bids, raising expectations for late-week cash trade.

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.

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