This week's Grain Farmers of Ontario market commentary has short term chart indicators for both corn and soybeans neutral with the main trend for both crops down.
Analyst Marty Hibbs says a close below the 3.70 mark for corn could see a move back to the recent bottom of 3.60.
However, if the 3.70 mark holds, he says we could see corn rally back to the 4 dollar level in the coming weeks.
For soybeans, Hibbs suggests we'd need to see a close above 9.50 to turn this market to the upside - even for the short term.
The GFO commentary has all the wheat market chart indicators negative.
However, Hibbs says we are getting into oversold territory for wheat and there are several support levels directly below recent bottoms.
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GFO Grain Market Commentary: (by Marty Hibbs)
CORN
On the charts: it was a very quiet week in the corn complex as the December contract continued to weigh heavily on the short term trend line which is now at $3.70. A close below that level could see a move back to the recent bottom at $3.60. If on the other hand the trend line continues to be supportive, we could see a rally back to the $4 resistance level in the coming weeks. Looking at the bigger picture, we have major support at the $3.50 level and major overhead resistance is sitting between $4.20 - $4.40 on the lead month. Short term indicators are neutral, while the main trend is still down.
SOYBEANS
On the charts: we are quoting the January contract as of October 28 and will adjust our prices accordingly. We are currently range-bound on the January contract from $8.60 to $9.25 per bushel. We would need a close above $9.50 to turn this market to the upside even for the short term. The gap on the weekly chart around $9.35 - $9.45 has not been filled so we could see another attempt at that target. Overhead resistance on January is still at the $9.50 level while support is seen at the $8.60 level. Short term indicators are neutral, while the main trend remains negative. There is very little support on the long term charts below the $8.50 level.
WHEAT
On the charts: wheat had a 30 cent range the week of October 21 thru 28 mostly to the upside before gravity took hold. Our head and shoulders formation is still intact on the daily chart, providing the interim lows of $4.80 are maintained. Major support levels are seen at the $4.50 level and overhead resistance in the range of $5.60 - $5.80 based on the December contract. Although all indicators are still negative, we are getting into oversold territory and there are several support levels directly below recent bottoms. Indicators are still negative and the main trend is still down.
Cash Prices as of market close, October 28, 2015: SWW @ $323.05/MT ($8.79/bu), HRW @ $240.59/MT ($6.55/bu), HRS @ $216.33/MT ($5.89/bu), SRW @ $230.89/MT ($6.28/bu).
