Good Morning- It’s all about weather and China (tariffs) today!
Markets are weak this morning. Soybeans are concerned about China. Which they do keep buying cargoes from Brazil. Wheat is lower based on the forecast for rain. They need rain in the areas where HRW is grown. As much to an inch is predicted to fall. Corn is just following the pack, with a forecast good for planting.
Basis levels are inching up, as farmers are busy in the field.
Technicals look like this:
May corn: resistance at $$3.83 ½, the 20-day MA, then $3.85. Support at $3.76 ½, then $3.71. Gapped lower overnight from Thursday’s close.
December corn: opened and closed at the same price yesterday, indicating a change. Gapped lower overnight. Resistance at $4.09, the high for the last 3 sessions, then at the double top at $4.10. Short term support at $4.05, then $4.03 ½ to $4.00. CK/CN carry at 9 cents, back to its widest traded level.
May soybeans: resistance at $10.46, then $10.52 ½. Support has fallen to the 100-day MA at $10.15 ¾.
November soybeans: resistance at $10.45, then the contract high at $10.60, support at $10.32 ½, the 50-day MA.
SK/SN carry at 11 ¾ cents this morning.