by Duane Lowry
Monday, April 23, 2012
Corn experienced rather steady recovery from a near unchanged opening, settling on the highs, up 9 1/2 cents. USDA reported 120 tmt US corn sold to unknown destinations. Tech-based selling interest should develop in July futures from current levels to up another dime. New-crop will find layers of resistance developing for the next 15 cents. Producers need to consider further strength as opportunities to establish catch-up sales strategies.
Soybeans experienced mixed and choppy activity early, but strength attempts faltered and the day's low was established near the close. July finished down 8 1/2 cents, with November down 14 1/2 cents. Short-term technical conditions may suggest we could spend a few days churning up here in a final chasing of the shorts. Overall conditions warn of a major liquidation event ahead. Producers need to focus on new-crop profitability opportunities.
Wheat also experienced choppy activity, but with an upward tone much of the session, settling up 9 1/2 cents. News is limited. Some additional short-covering energy is possible. Overall conditions suggest limited upside potential above resistance that should unfold in the $6.40-50 zone, basis July futures. Overall conditions suggest eventual further price unraveling below last week's lows.
In summary, bulls and bears all have something to point to this afternoon. Short-term indicators suggest a bit more time may be spent defining upside resistance. Overall conditions warn of eventual further downside energy building below last week's lows. Producers need to focus on reasonable new-crop profit opportunities during the next several days. At the time of the grain close: Crude= down $1.04, Gold= down $5.00, Dow Index= down 160 and the US Dollar= up 25.
WEATHER: Midday forecasts were similar to this morning's discussion, offering a favorable mix of planting opportunities and moisture.
REPORT WATCH: Weekly Crop Ratings data will be released later this afternoon.
Monday night's grain trade outlook: Expect mixed activity, but technical conditions suggest we could spend a few more days seeking to define upside resistance, which means weakness may be well supported.
Humor/Quote of the Day:
The purpose of life is to discovery your gift. The meaning of life is to give your gift away.
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.
--George Bernard Shaw.
This newsletter is prepared from information believed to be reliable. Early Market News, Inc. does not guarantee that such information is accurate or complete and it should not be relied upon as such. Opinions expressed are subject to change without notice.