Grains Consolidate Ahead of Quarterly Stock Report

Corn, wheat, and soybeans are consolidating on Thursday morning ahead of the USDA scheduled quarterly release of its Grain Stocks report. Expectations are for corn stocks to come in at a range from 8.55 billion to 8.88 billion bushels with an average of a record 8.703 billion bushels. Expectations for wheat stocks range from 1.45 billion to 1.64 billion bushels with an average of 1.498 billion bushels, and expectations for soybean stocks range from 1.81 billion to 2.11 billion bushels with an average of a record 2.03 billion that,

Corn Prices

Corn prices are consolidating and forming a bear flag pattern that is a pause that refreshes lower. The first level of support is seen near an upward sloping trend line that comes in near 370. Resistance is seen near the 10-day moving average at 376. Resistance on corn prices is seen near the 10-day moving average at 375. Momentum is negative, but turning neutral as the MACD histogram is printing in the red with an upward sloping trajectory which points to consolidation. The fast stochastics is consolidating and appears to have made a double bottom which shows that negative momentum is decelerating. It is coming from oversold territory printing a reading of 17 on Wednesday morning and now above the oversold trigger level printing a reading of 25.

Soybean Prices

Soybean prices edged lower early on Wednesday. Prices are forming a wedge pattern as energy is stored and prices consolidate. Resistance is seen near the 10-day moving average at 1026.5, 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 is stable as the MACD (moving average convergence divergence) index prints in the red with a declining trajectory which points to lower prices.  The fast stochastic is moving lower and printing a reading of 15, which is below the oversold trigger level which could foreshadow a correction.

 

Wheat Prices

Wheat prices broke through trend line support on Wednesday and are consolidating in early North-American trade.  Support is seen near the March lows at 444 and then target support at the January lows at 413. Negative momentum is decelerating as the MACD histogram is printing in the red with a flat trajectory which points to consolidation. Prices are oversold as the fast stochastic is printing a reading of 5, well below the oversold trigger level of 20 which could foreshadow a correction.