Yahoo Finance Wheat Breaks Out Corn Closes at 9-month Highs
Grain prices are consolidating and are lower in early trade on Tuesday after attempting to break out on Monday. Wheat corn and wheat retained their breakout posture, soybean prices quickly retraced and are back in their prior range. Colder than normal weather is expected to cover most of the mid-west over the next 2-weeks according to a forecast from the National Oceanic Atmospheric Administration. The planting season has gotten off to a very slow start which has help all three major grains.
Corn Prices
Corn prices closed at a 9-month high but well off the highs of the session on Monday. Corn was unable to close above resistance at 3.94 and is lower on Tuesday but within the range made Monday Support is seen near the 10-day moving average at 3.846. 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 lower in early North American trade on Tuesday and are testing support levels near the 10-day moving average at 1032. Resistance is seen near a downward sloping trend line that comes in near 1066. Momentum is positive to neutral as the MACD (moving average convergence divergence) index generated a crossover buy signal, but the MACD trajectory is descending. This reflects consolidation
Soybean export activity for the week was down 64% from the prior week and 63% less than the prior 4-week average. 2018/19 export sales were 166.5 TMT. Combined season sales were down 75% week over week. Total export commitments are 97% of projections with 19 weeks to go and need to average 94 TMT in weekly sales to meet forecast. Current export sales are 3.5% behind last year’s pace.
Wheat Prices
Wheat prices broke out on Monday and are slightly lower in early North American trade. Prices gapped above resistance near the March highs at 5.06 which is now seen as support. Resistance is seen near the July highs at 5.53. 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).
This article was originally posted on FX Empire
