Good Wednesday Morning 07-16-14… Higher is the word in Chicago this morning as the markets were able to build on Tuesday’s rally off session lows in the overnight session. Technical momentum indicators are now rolling to the upside off deeply oversold technical conditions which puts the market in position to put a weekly reversal-up on the table for individual corn contract charts and put together a higher weekly finish in soybeans. The supply news was clearly bearish this week with private estimates putting the national average corn yield at bin busting 172 bushels per acre. Clearly the crop is big but it’s not in the bin just yet. The trade is already thinking USDA will understate the crop on the August report. On the technical front the market needs to maintain this morning’s advance into close and show measurable follow through into week’s end to dress up the chart picture for a recovery rally. Export interest has picked up on the price break over the past several days which have at least given the market some fundamental demand support for corn to bounce off the swing and measuring gap objective of 3.77 for now. A close above 3.94 ½ is needed to lay the ground work for December corn futures to make a run at the 4.10 ½ /4.14 ½ chart gap. November soybeans need to post a close above the 11.08 area to dress up the chart picture for a push to the 11.28 ½ /11.47 ¼ chart gap. H. Dan Zwicker Dan.Zwicker@cgb
Posted on: Wed, 16 Jul 2014 12:44:02 +0000