Marty Hibbs thinks we will see higher corn prices in June.
The Grain Farmers of Ontario analyst suggests a close above the $4.07 level would also set the market up for a test of the 2015 pivot point at from $4.20 to $4.40 a bushel.
This week's GFO market commentary has short and medium term corn indicators now positive, but the long term trend is still down.
For soybeans, Hibbs says if the market can close above 11 dollars and keep the momentum intact, the next goal would be to close above $11.25 on July.
He doesn't see much resistance for soybeans until we get closer to the 12 dollar mark in Chicago.
Short term soybean indicators remain bullish but the long term trend is still negative.
And the commentary points out wheat appears to be dependent on a strong performance in both the corn and beans to have any hope of higher prices in the coming weeks.
Hibbs has the short and medium-term chart signals on wheat mixed with the long term trend still down.
Grain Farmers of Ontario Weekly Market Commentary: (by Marty Hibbs)
CORN
We are sitting at the $4.05 level on July corn as of the close on May 25. We are virtually at the highs of the week prior and will find out whether or not we continue this rally or run the stops above $4.07and the reverse. My guess is that we will see higher prices in the month of June due to the red bullish technical signal we received on May 10 and spoke of last week. The May long weekend in the U.S. can play havoc with the markets, and it will be interesting to see how the grains behave going into the month of June. A close above the $4.07 would also violate a four-year-old trend line on the long-term charts and set us up for a test of the 2015 pivot point at $4.20 - $4.40. We are looking at a support level of $3.70 and again at $3.50 with initial overhead resistance of $4.10 - $4.20 based on the closing prices of the July Chicago futures. Short and medium term indicators are now positive, but the long term trend is still down but trying to turn upward.
SOYBEANS
The beans continue to tread water off their May 10 high and are preparing to challenge that high of $10.92 and possibly violate $11 on the July contract this week. The key with this move is to see if we can close above $11 and keep the momentum intact. If so, our next goal is to close above the resistance level of $11.25 on July. I feel there is not much resistance once we get past $10.25 until we close in on the $12 mark on the Chicago futures price. Support is now seen at $10, while overhead resistance remains at $11 and $11.25. Short term indicators remain bullish, but the long term trend is still negative.
WHEAT
Wheat continues to be the weaker of the grains; the softness in the beans and corn actually translated into weakness in the wheat as it lost 15 cents on the week. At this point in time, it seems that the wheat is dependent on a strong performance in both the corn and beans to have any hope of higher prices in the coming weeks. We see major support at the $4.35 - $4.45 on July with resistance between the $4.85 and $5.20 area on the July contract. A close above $5.25 on July could be the start of a sustained move higher into the month of June. That is a big order for now but all markets turn at some point in time and the turn-around starts out as a minor move. Unlike the corn and beans, the signals on wheat are mixed and we have not yet received any red confirmation signals to indicate higher prices or a possible reversal even in the short term trend. The long term trend for the time being is still down.
