Grains Consolidate as Favorable Weather Caps Further Advances

Favorable weather conditions continue to be the farmers friend. Corn planting increased from 17% complete three weeks ago to 81% complete in the latest data release, up 19 points over the last week. This is a point behind last year’s pace and equal to the five-year average. Pennsylvania is the furthest behind in planting, having 35% of their crop planted vs. a five-year average of 64%. South Dakota made the most progress during the latest week by planting 45% of its crop. Indiana remains the furthest ahead of schedule with 88% planted vs a five-year average of 71%.  South Dakota made the most progress during the latest week by planting 45% of its crop. 50% of the corn crop has emerged.

Corn Prices

Corn prices are consolidating in early North American trade. Prices broke out above the 3.99 highs and are consolidating above support near the 10-day moving average at 398. Target resistance is seen near the June 2016 highs at 4.39.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

Soybean Prices

Soybean prices are unchanged in North American trade holding above support near near the 50-day moving average at 1029. Resistance is seen near the May highs at 1043. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

The soybean crop moved from 35% planted to 56% over the past week as numerous states were able to get 20% or more of their crop into the ground.  South Dakota is the furthest behind schedule, having only 24% of the crop planted vs. a 5-year average of 44%.  Illinois remains the furthest ahead of schedule, 81% complete vs a 5-year average of 42%.  Minnesota showed the most progress over the past week, getting 37% of its crop planted. 26% of the soybean crop is emerged.

Wheat Prices

Wheat prices moved lower in early trade in North America. Support is seen near the 50-day moving average at 502. Resistance is seen near the 50-day moving average at 4.82. Resistance is seen near a downward sloping trend line that comes in near 540. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).