Daily Grains Analysis for March 26, 2018

Grain prices rebounded as reports show Chinese and U.S. officials are having discussions on how to ease trade tensions. After Trump levied 60-billion in Steel tariffs,  the Chinese retaliated on $3 billion in largely agricultural items, but hinted at more to come, including mulling “all options” when asked about ongoing Treasury purchases. Perhaps once the full scope of our tangled economic relationship is laid bare, both sides will have a greater appreciation for its complexity and benefits, while addressing its evident shortcomings as well.

Corn Prices

Corn prices rebounded sharply on Monday but ran into resistance near the 10-day moving average at 379. The first level of support is seen near the 50-day moving average at 368. Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal.  The MACD histogram is printing in the red with a downsloping trajectory which points to lower prices.

Soybean Prices

Soybean prices rebounded sharply after breaking down on Friday morning sliding nearly 1.5% and testing support near the 50-day moving average at 1014. A break of this level would lead to a test of the February lows at 967. Resistance is seen near the 10-day moving average at 1033. Negative momentum has accelerated as the MACD (moving average convergence divergence) index prints in the red with a declining trajectory which points to lower prices.  The relative strength index (RSI) which is a momentum oscillator is moving sideways and printing a reading of 52, which is in the middle of the neutral range and reflects consolidation.

Wheat Prices

Wheat prices whipsawed but moved lower after testing higher prices.  Resistance on wheat is seen near former support and the 10-day moving average at 466. Support is seen near an upward sloping trend line that comes in near 446. Negative momentum is decelerating as the MACD histogram is printing in the red with an upward sloping trajectory which points to consolidation.