Grain Farmers of Ontario's Marty Hibbs says the corn market continues to languish.
He says corn is in a strong downtrend that started in August of 2012.
According to Hibbs - all the market indicators for corn are negative, with major support at 3.50 and overhead resistance at 4 dollars.
He reports the soybean chart shows a clear downward trend that also started in August of 2012.
He sees the first level of support at 8.50, but cautions if the price falls below that it could get down to 7.50.
GFO has the short term trend indicator neutral for soybeans but the real trend still negative.
And the commentary pegs wheat as the only grain that appears to be getting into oversold territory.
Hibbs puts the main trend for wheat still down with overhead resistance at 5 dollars and again at the 5.40 to 5.60 range.
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Grain Farmers of Ontario Weekly Market Commentary: By Marty Hibbs
CORN
On the charts: With 2015 coming to a close, the corn market continues to languish. It has been a very poor year for all commodities, and judging by the charts 2016 could start off with more downward pressure on most commodities. Corn is in a strong downtrend and has been since August 2012. This is typical of a trending market as major trends stay intact for an extended period of time, and one needs to identify this and trade with the trend. All indicators are still negative with major support at $3.50, and again at $3.20. Overhead resistance stands at $4, and again at $4.50. All numbers are based on the current lead month of the Chicago futures markets.
SOYBEANS
On the charts: As I have pointed out for many months, the soybean chart shows a clear downward trend that started the same time as corn: August 2012. Like corn, soybeans have lost about 60 % of their entire value since their 2012 highs of $18. As for support areas, on the March charts, we still see $8.50 as the first level but below that level we don’t see much until we get close to the $7.50 price range. As for overhead resistance, there are many levels, starting at the $9-$9.25 price points and again at $9.50. Although we have a neutral short term trend indicator, the real trend is still negative and will need a lot of work to turn this market around.
WHEAT
On the charts: Wheat has fared the best in an all-out numbers game, with the loss since the 2012 top coming in at right around 50% of its value on Chicago. Good support is seen around the $4.50 mark on the lead month and Chicago wheat is the only grain that appears to be getting into oversold territory on my indicators. Meanwhile, the trend is still down with overhead resistance $5 and again at the $5.40-$5.60 range.
