Grain Market Recap
Grain bulls can breathe a little easier this afternoon after each of the major grain contracts closed today’s trading session in positive territory. After scoring a new contract low in yesterday’s session, December corn led the way higher, settling 6 cents higher on the day to settle at 482. The question now becomes – how long will this rally last?
The last 48-hours have been a whirlwind for the December corn contract. After scoring a new contract low early in yesterday’s session, the contract managed to stage a late-session comeback to close the session in positive territory. Yesterday’s late-session strength continued into today’s trade, as we gradually moved higher throughout the day. We closed 6 cents higher to settle at 482 ¼. In the process, we managed to close above trendline resistance for the second day in a row, and pushed through our 472-476 pivot pocket. If the rally permeates into tomorrow’s trade, bulls can expect to hit 3-star resistance between 489 and 491.
November soybeans followed corn higher today by settling 4 ½ cents higher to close at 1320. It was a tough start to the week, with the contract shedding 43 ¾ cents between Monday and Tuesday’s trade, but it seems as though the contract may be finding a bit of support. Our 4-star support pocket between 1300 and 1304 should still be closely monitored, as that is also where the 100-day moving average lies. Bean bulls will look to parlay today’s close into working the contract back to our 1330-1332 ½ pivot pocket in tomorrow’s session.
The December wheat contract continues to try and hammer out a seasonal bottom. After bouncing on either side of unchanged throughout the session, the contract managed to close 4 ¾ cents higher to settle at 588 ¾. Seasonally, wheat tends to bottom out in late-September before rallying in the month of October. With today’s close, we managed to get out above our 585-587 pivot pocket and laid the foundation for bulls to retest 3-star resistance between 595 and 599 ½.
December live cattle dipped lower in the early morning trade and looked to be on pace for their third consecutive session of declines. The market found its footing about 30 minutes after the open and proceeded to rally, finishing the day near the top of the sessions range. At the close the December contract was 1.05 higher, settling at 191.52.
Like live cattle, feeder cattle traded lower but found their footing near support from September 13th. That encourage some buying interest which took prices back into positive territory, finishing the day 1.22 higher to settle at 260.57.
In yesterday’s interview with AgDay TV we talked about the lean hog market being extremely choppy and that maybe the market had some room up to the 200-day moving average but trade above that might be limited. Today was anything but choppy, the market beelined it for the 200-day moving average which ultimately did act as resistance so far. If the Bulls are able to chew through this barrier perhaps it would open the door for a move back above $80.00. Tomorrow’s trade will be pretty important from a technical standpoint.