The corn market is finding support at the 3.50 level and will likely not see any significant movement either way until the January 12th WASDE report.
That's according to Grain Farmers of Ontario analyst Marty Hibbs.
He feels the current 3.50 support level is important, suggesting a move below that could see prices drop to 3.25 on the March contract.
Hibbs has all the corn chart indicators negative and the main trend still down.
For soybeans, this week's GFO commentary suggests the 8.40-8.50 support levels may be tested again.
Hibbs believes there's no significant technical support for soybeans below that until we get into the 7.50 to 7.75 range.
Although the short term chart trend indicator is neutral, he says the real trend is still negative.
The March wheat contract has slipped into the 4.50 range this week - a range Hibbs says is important from a technical standpoint.
He suggests wheat could fall to 4.25 if the 4.50 support doesn't hold.
Hibbs continues to consider wheat a bear market, with both medium and long term trends down.
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Grain Farmers of Ontario Weekly Market Commentary: (Marty Hibbs)
CORN On the charts: Corn continued to weaken during the holidays, losing 10 cents a bushel to hit our $3.50 support line. This is a very important level, and a close below the $3.45 level on the March contract could suggest a move down to the next support level of $3.25 on the March contract. For the time being, we are finding support at this level and will probably not see a significant move either way until the January WASDE numbers are released on the 12th of January. All indicators are still negative with major support at $3.45-$3.50, and again at $3.20. Overhead resistance stands at $3.80 and again at $4. All indicators are negative and the main trend is still down.
SOYBEANS On the charts: The beans continued to track sideways over the holidays, however, our support at $8.40-$8.50 may once again be tested and it is important for the simple reason, that there is no significant technical support until we reach $7.50-$7.75 if the $8.40 fails to hold on a close. The big difference compared to wheat, is that our oversold indicators on wheat are flashing signals, where the same indicator on beans are nowhere near recording oversold. In a nutshell, this indicates that a break could see more downside if there is a rout on prices. Support is still seen in the $8.40-$8.50 area on the March charts, while the overhead resistance remains in the $9 vacinity. 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: The holidays proved to be a quiet time for the wheat and for most of the grains. The March contract slipped back to the all-important $4.50 range this week. This area is important from a technical standpoint. If the March contract closes below this level, we could see a selloff towards the $4.25 level in the coming weeks. With the WASDE report due out on the 12th of January, we can only hope for something to turn the tide. As I have said for the past two years, we continue to be in a bear market and need to treat them as such while looking for selling opportunities on rallies until the trend shows us that it has turned the corner. Support is seen at the $4.40-$4.50 level on March while both the medium and long term trends remain down.
