CNS Canada — Soybean and corn futures at the Chicago Board of Trade have come down over the past week, and may be headed lower as both fundamental and technical signals look bearish.
January soybeans have a downside target of $9.40-$9.50 per bushel, said Terry Reilly of Futures International in Chicago (all figures US$).
Improving planting weather in South America and large U.S. crop prospects were bearish for beans, as traders anticipate upward revisions to the U.S. Department of Agriculture’s production estimates in a report due out Nov. 9.
January soybeans tried and failed to move above the 100-day moving average during the past week, which Reilly said opened the door for a test of the 50-day moving average on the other side around $9.70.
For corn, he placed the downside target in the December contract at $3.35-$3.40, with improving Brazilian growing conditions and losses in crude oil weighing on values.
After USDA’s monthly report on Nov. 9, Reilly said there was little in the way of fundamental news that could move the grain and oilseed markets until January.
One supportive feature is the large drop in the U.S. dollar index, he said.
Solid export demand on the other side is limiting losses for soybeans. Meanwhile, domestic feed demand for corn is also expected to pick up, according to Reilly.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.Tagged cbot, corn futures, South America, soybean futures, U.S. dollar, USDA