Most of the chart trends for corn, soybeans and wheat remain down this week.
However, Grain Farmers of Ontario analyst Marty Hibbs sees some signs of improvement - at least for corn and soybeans.
He points out corn has found solid support at the $3.50 a bushel level and suggests a close above $3.70 could begin an assault on the $4 level into the spring.
With soybeans, Hibbs thinks we could be getting ready to challenge the $9 level again.
After that, he sees resistance at both the $9.25 and $950 levels on the lead month Chicago contract.
The GFO analyst reports wheat has proven its support levels once again at the all-important $4.40-$4.50 level.
A close above $4.75 could set up a challenge of the $5 level on the May contract.
However, Hibbs doesn't think that will happen before the USDA report the end of this month.
===
Grain Farmers of Ontario Weekly Market Commentary: (by Marty Hibbs)
CORN: On the charts: Once again, Corn found solid support at our $3.50 level on the May contract. This consistent support will eventually lead to higher prices if we cannot close below that level. Each time we try and fail, there is more reason to believe that we will eventually turn higher. Support is still at $3.50 with major support at the $3.20 level on the lead month. Meanwhile, a close above $3.70 on the May contract could ignite a decent rally to begin an assault on the $4 level into the spring. For now, the long term trend continues to be down.
SOYBEANS: On the charts: The May soybeans flashed a buy signal on the daily chart this week and even though the trend is down, this is the first signal I received in the past six months. What does this mean? Not much, except to say that we could be getting ready to challenge the $9 level again. Of course, there are many roadblocks on the charts if and when we move higher. Once we close above the $9 level, we will run into resistance at the $9.25-$9.50 levels on the lead month Chicago contract. As we mentioned last week, the broad base that is being built could prove to be quite bullish in the coming months. Our main support continues to hold at the $8.40-$8.50 level on the May contract. Weekly and long term trends are still negative, and the main trend remains down.
WHEAT: On the charts: Like Corn, Wheat has proven its support levels once again at the all-important $4.40-$4.50 once again and it is important to note that this support line originates back about 12 years. We should now be heading towards the overhead resistance levels of $4.75 on the May contract. If we manage to get through and close beyond this area, we are set up to challenge the all-important $5 level on the May contract. My guess is that we may not see this happen before the USDA report at the end of March. Major overhead trouble is at $5 and again at $5.25-$5.50 on the lead month contract. For now, both the medium and long term trends remain down.
