4:45 AM: This is Kluis Commodity Advisors with your opening grain comments for Tuesday April 30, 2019. US grain prices could did not hold onto the grain yesterday very well. Once the wheat market started to head south, that pulled corn and soybeans off their highs. Winter wheat conditions are off to one of the best starts in 20 years. The huge wheat supply in the US and world puts wheat futures under pressure. In the overnight markets, corn is down 1 cent, soybeans are up 1 cent and wheat futures are mixed.
To do: Our team has no new recommendations at this time. You can click here to review our current recommendations.
What I think: Basis levels on corn continue to be very strong for some nearby shipment. This is as good a time as any to get corn basis levels locked in–especially if you cannot plant corn.
Global Stock Markets: The stock market in China is up 0.5%, Japanese stocks are down 0.2% and European stocks are down 0.1%.
Outside Markets: The US Dollar Index is down 23 points at 97.61, crude oil is up 71 cents at $64.21 per barrel, the S&P futures are down 1 point at 2,942 and gold is up $6 per ounce at $1,287.
Livestock futures: Livestock futures closed lower on Monday. June Hogs closed down 70 cents at $88.05 and June Cattle closed down 25 cents at $114.80.
Today’s chart: Soybeans
About this chart: This is the weekly soybean continuation chart. You can see we have been in a downtrend since late January. The RSI (Relative Strength Index, underneath the chart) shows we are now under 20. This is considered “oversold”. Support for nearby soybeans comes in at $8.32, our low from the end of October 2018. If we cannot find support at $8.31, then the next area of support is an old double bottom we have at $8.11.
July Corn: The trading range is 2 cents; prices are down 1 at $3.61. Resistance is at $3.66 with support at $3.51.
July Soybeans: The trading range is 3 cents; prices are up 1 cent at $8.62. Resistance is at $8.97 with support at $8.60.
Wheat: CBOT wheat is down 4 cents; Minneapolis wheat is up 1 cent and KC Wheat futures are down 3 cents.
What to watch: Keep an eye on the extended weather forecasts. The next 10 days look very wet. Then it may dry out a bit, but 15-day forecasts are more subject to change. With planting behind the average pace and wet weather in the next 10 days, the focus will be the extended maps.