The Way Ahead
September 27, the Chicago Board of Trade soybean futures rises closed Friday, driven by the daily limit of corn futures and wheat futures rose 5%, assisting market to get rid of the U.S. Department of Agriculture the soybean inventory report negative impact on price rise.
U.S. Department of Agriculture announced that, as of September 1, theU.S.soybean stocks at 169 million bushels, is higher than the market forecast range of 1.1-1.52 billion. Ministry of Agriculture confirms last year’sU.S.soybean production was revised to 3.093 billion bushels, compared with 37.5 million its forecast.
The increases were limited by the large number of the October futures first delivery notice day delivery.
TheU.S.corn and soybean harvest next week should be rapid progress, a small amount of rainfall will only result in a short-term impact.Brazilincrease the plant area of soybean. Indicators key resistance for December corn futures contracts for the 50-day moving average at $ 7.90, the main support for the 100-day moving average at $ 6.86-1 / 2. Nine days Relative Strength Index (RSI) is 48. Indicators December corn futures contract settled up 40 cents to settle at $ 7.56-1 / 4 per bushel. Today CBOT corn futures volume was estimated at 371,870 hands.
The price of corn is still down. Corn futures news in September 28 CBOT Friday ,the price difference surged 40 cents, in the limit closure. The United States Department of Agriculture (USDA) announced, a quarterly inventory report showingU.S.corn stocks by September 1, much lower than the estimated. The market price reacts positively. A USDA corn stock is at 988 million bushels, below the analyst forecast of 1.113 billion bushels. Despite the progress of theU.S.corn harvest is positive, CME group report shows that yields are better than expected
In conclusion, the price of both products will be downwards .
October 6th, 2012 at 11:24 pm
Excellent job on research. So what’s your next trading going to be?
October 7th, 2012 at 11:13 am
Thanks for your encouragement!!
I will offeset my soybean contract. I will do nothing with soybean before the USDA report announciation,due to lack of much information.
I will continue selling the short of corn because of clear signals.