Wheat Market Recap
Dec Wheat finished up 2.50 at 594, 3 off the high and + 8 from the low.
Mar Wheat closed down 6 at 603. This was + 2 from the low and 10.25 off the high.
Dec Wheat closed higher and March closed down 0.06 as funds appear to be still rolling Short positions out of December.
The market followed the other grains higher early in the session but there was not much in the way of Short-covering from fund traders and selling increased when the stock market slide lower on the day.
While the Corn and Soybean markets found support to close higher, a weak demand outlook kept selling pressure intact for Mar and deferred contracts in the Wheat pit.
Slow export news and weakness in corn helped to pressure into the mid-session but the market held inside of yesterday's range.
Ethiopia bought 300,000 tons of optional origin Wheat with traders believing the Wheat will be from the Black Sea region.
Dec Minneapolis Wheat closed 36.25 lower and closed under the 100-Day Moving Average for the 1st time since early October.
Corn Market Recap
Dec Corn finished up 1.25 at 599, 2.50 off the high and + 4.75 from the low.
Mar Corn closed +.0075 at 605.75. This was + 4.25 from the low and 2.75off the high.
Dec Corn closed higher with an inside day in relatively quiet trade.
While the stock market was lower, a firm trade for Gold and Energy plus more talk that Corn is cheap enough to attract some increased demand helped to support.
Options expire Friday and the market seems to be hovering near the 600 strike.
A rally in Metal and Energy markets helped provide some support early in the session but renewed weakness in the stock market into the mid-session sparked renewed selling pressures from fund traders to push the market down to near yesterday's lows.
Thoughts that the market is oversold after the recent sell-off helped to provide some early support. Fears that the debt situation in Europe and the US could lead to a weaker Global economic outlook continues to provide some selling pressures.
The selling was absorbed by more and more traders seeing very Strong domestic demand due to recent lower prices plus a firm tone to the cash market on a lack of near-term selling from producers.
Jan Rice finished down 0.145 at 14.31, 0.05 off the high and 0.09 up from the low.
Soybean Complex Market Recap
Jan Soybean finished up 5 at 1153, 2.75 off the high and + 12 from the low.
Mar Soybean closed + 4.75 at 1162.75. This was + 12 from the low and 2.75 off the high.
Dec Soymeal closed up 2.4 at 292.0. This was + 3.4 from the low and 0.4 off the high.
Dec Soybean Oil finished + 0.89 at 50.78, equal to the high and + 1.15 from the low.
Jan Soybean closed 0.05 higher and + 0.12 from the lows after 1st moving to the lowest level since November 23rd of last year.
Jan Soymeal also closed higher after a move to a 1-yr low.
A firm trade for energy and metal markets helped to support. The market followed the financial markets higher early in the session and followed the financial markets lower into the mid-session.
Traders appear nervous on extending positions into the quieter volume days just ahead and there is still a sense of significant macro economic threats into next week.
As uncertainty increases, there is a tendency to see lower prices as traders in general see 1150 Soybean as historically expensive and a Strong demand underpin appears necessary to provide support.
China demand appears Strong but US export sales are still well behind a pace to reach the current USDA estimate.
Traders see South America's weather as favorable and private analysts are raising the production outlook. But, while soil conditions are favorable now, traders see mostly dry weather and only light rains for the next few weeks for parts of southern Brazil and Argentina.
Strength in metal and energy markets supported the market early while weakness in energy and equity markets into the mid-session helped to pressure. The early sell-off pushed the market down to the lowest level.
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.