Grains Nearing Resistance

The grains are moving higher with corn up 3/4 of a cent, soybeans up 6 cents and wheat up 3 1/2 cents this morning. The outside markets are mostly supportive with the dollar unchanged, the E-MINI S&P up .61 percent and crude oil up 48 cents this morning.

The grains have been drifting higher over the last couple days but be wary as corn and wheat near resistance levels. Corn resistance at $4.02 could be relatively potent if corn has the momentum to test it. The resistance level was a gap on July 27th and was unsuccessfully tested back on August 10th. If prices can close above that price level we could see further short covering added to this rally. Wheat resistance is at $5.33 ¼ cents which was also a high back on October 10th. With wheat and corn only cents away from testing these resistance levels both corn and wheat could find it hard to continue the climb higher in today’s session.

The Midwest harvest should be mostly uninterrupted over the next couple weeks. The Planalytics 6-10 day forecast shows 50-60 percent drier than average weather throughout the heart of the grain belt. The 8-14 day forecast also shows no significant moisture entering the Midwest which will provide a large window to progress through the bulk of harvest.

—Cody Bills