Wheat Tumbles, Corn and Soybeans Follow

Grain prices are moving lower in early North American trade on Monday. Wheat is taking it on the chin, but soybean and corn are also lower. Corn export activity moved lower in the latest week, but the 4-week average was down. Current export sales are 1% behind last year’s pace.

Corn Prices

Corn prices are lower in early North-American trade on Monday dropping below the breakout level.  Target resistance on corn is seen near the 10-day moving average at 3.94.  Support is seen near the 50-day moving average at 3.85.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

Weekly corn export sales for the 2017/18 marketing season of 695.6 TMT was down 32% from last week and 24% less than the prior 4-week average.  New crop sales of 90 TMT lifted combined sales to 785.6 TMT.  Total sales were less than analyst expectations that ranged from 800 to 1,250 TMT. Increases were reported for Columbia, Vietnam, and Japan. 2017/18 export commitments are 91% of the USDA forecast and need to average 288 TMT per week to meet projections. Export sales trail last year’s pace by 1%.

Soybean Prices

Soybean prices tumbled down to support near an upward sloping trend line at 994. Prices dropped more than 1.8% on Monday, in early North American trade. Resistance is seen near the 10-day moving average at 1021. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

Wheat Prices

Wheat prices dumped near 3.6% in early North American Trade on Monday. Support is seen near the 50-day moving average at 4.82. Resistance is seen near the 10-day moving average at 5.18. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).