Daily Grains Analysis for March 27, 2018

Dry weather in Argentina is supporting corn and soybean prices, with only a few showers over the weekend and little rain expected next week. Relief that US crops were not targeted by Chinese tariffs has also helped stoke buying interest and support those markets. Demand from dairies are declining according to commercials as milk prices are dropping reducing the demand for feed.

Corn Prices

Corn prices are down on Tuesday following whipsaw price action on Monday which saw corn attempt to move higher and then settle on its lows. The first level of support is seen near an upward sloping trend line that comes in near 370 which comes in near last weeks lows. Resistance is seen near the 10-day moving average at 378. Momentum is negative as the MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices. The fast stochastics is consolidating just above the oversold trigger level of 20.

Soybean Prices

Soybean prices whipsawed closing lower on Monday after attempting to push higher early in the trading session. Prices are forming a wedge pattern as energy is stored and prices consolidate. In the last two trading session prices have carved out a 30 point range.  Resistance is seen near the 10-day moving average at 1031, and then a downward sloping trend line that comes in near 1033. Support is seen near an upward sloping trend line that comes in near 1015. 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 fast stochastic on the other hand is moving higher bouncing from oversold territory which points to higher prices.

Wheat Prices

Wheat prices are consolidating in a relatively tight range forming a bear flag pattern which is a pause that refreshes lower.  Resistance on wheat is seen near the 10-day moving average at 462. Support is seen near an upward sloping trend line that comes in near 450. Negative momentum is decelerating as the MACD histogram is printing in the red with an upward sloping trajectory which points to consolidation. Prices are oversold as the fast stochastic is printing a reading of 12, well below the oversold trigger level of 20 which could foreshadow a correction.