Grain Traders Look To Next Tuesday Prospective Plantings Report

News that two more ethanol plants will be closing
May soybeans made run at technically significant $9.00
Prospective Plantings report next Tuesday
Grain futures market update

Grain futures market update

 

Corn Futures (May)

May corn continue to grind higher yesterday, despite news that two more ethanol plants will be closing, due to negative margins. Export sales this morning came in at a whopping 1,814,300 for old crop corn, 81% above the 4-week average. Assuming the world is still in one piece come Monday, attention will turn towards the Quarterly Stocks and Prospective Plantings report, out on Tuesday morning. We will have estimates available over the weekend.

The market came within a stone’s throw of our pivot pocket, 354-356 ¾,but failed to attract new buyers. If the bulls were able to chew through this pocket, we could see an extension towards 363 ½-365 ¾. This would be a spot where we’d look at selling more aggressively. This pocket represents previous support and the eventual breakdown point from March 16th.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 363 ½-365 ¾****, 373 ¼-375**

Pivot: 354-356 ¾

Support: 330-332

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Soybeans (May)

May soybeans made a run at the psychologically and technically significant $9.00 handle but fell short as profit taking from recent buying halted the rally. Weekly export sales this morning came in at 904,300 metric tons for old crop beans, 43% higher than last week. As mentioned with corn, assuming the world is still in one piece come Monday, attention will turn towards the Quarterly Stocks and Prospective Plantings report, out on Tuesday morning. We will have estimates available over the weekend.

The market fell just shy of printing $9.00, this is not only a psychologically significant level, but also technically as it represents the 50% retracement from the October highs to the recent lows. If you have been able to ride the wave higher, this would be a spot to consider reducing exposure. We would look for a pullback as a buying opportunity. Previous resistance now becomes support, we see that as 854-858 ¾.

Bias: Neutral/Bullish

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