GFO analyst Marty Hibbs says the soybean market is losing all the gains seen since the key reversal on November 23rd.
He warns we could see some re-testing of the recent lows of 8.45 to 8.50, which he calls the main support level.
This week's Grain Farmers of Ontario market commentary says the corn trading range tightened even further this week.
Major overhead resistance is around 4 dollars with support levels at 3.50, then down to 3.20.
The commentary has daily indicators now positive for corn with the weekly and long term trends remaining negative.
For wheat, Hibbs says the Canadian dollar has been helpful with current prices this year.
But he cautions there will come a point where the dollar will find support and reverse back towards the 75-80 cent mark.
The GFO commentary has all wheat market indicators negative and the main trend still down.
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Grain Farmers of Ontario Weekly Grain Market Commentary: by Marty Hibbs
CORN
On the charts: The trading range tightened even further this week as the March corn contract fluctuated between $3.70 support and $3.80 resistance. Major overhead resistance is around the $4 level and our support levels are still at $3.50 and again at $3.20. Daily indicators turned positive last week, but the weekly and long term trend remains negative.
SOYBEANS
On the charts: We have now switched our quotes to the March soybean contract. The overhead resistance at the $9.10 area proved to be a brick wall for the time being. We are now losing all of the gains seen since the key reversal on November 23 and it looks like we should be re-testing the recent low of $8.45 - $8.50 which is now the main support. If this area fails, I am lost technically as there is not much support between there and $7.50, except maybe a pivot point around $7.75 on the long term charts.
WHEAT
On the charts: Like the corn, the March wheat contract was range-bound between $4.80 and $5. Short term movement looks rather dull, but looking at the monthly chart, there is a saucer bottom pattern that suggests we will see $15 wheat in the next three to five years. I know this doesn’t help anybody at the moment, but it is something to ponder if you are discouraged with our current prices. Current prices are at the recent bottom of $4.60 and the next level is $4.50 on the lead month contract. The Canadian dollar weakness has been helpful with regard to our current prices this year, but it should be noted that there will come a point where the dollar will find support and reverse back towards the 75 - 80 cent level. All indicators remain negative, and the main trend is still down.
