Ireland is getting a $113 billion bailout, which did little to ease investor concerns as the dollar continues to climb. Ideas are that additional funding will be needed. Keep in mind that debt problems lurk in Portugal and Spain as well, and will likely spread to other countries in Europe. Meanwhile, tensions remain between North and South Korea, which is supportive of the greenback. However, corn was supported today on ideas that Argentina will export up to 3.0 million tons of corn to Russia, while wheat was higher because of continued dryness in the Plains. Soybeans, however, could not shake off strength of the dollar.
March corn is recovering from its recent low at 520.25. Prices rallied to 560 in the overnight session, which was a target mentioned in last week’s On The Money comments. Unless there is a close below 545, we may work higher to 575, but need be alert for a top during the period of December 1st-3rd, although it could be later.
Currently, old crop sales should be at the 60 percent level.
March soybeans have been unable to overcome last week’s high of 1270. So far, the rebound from the low made earlier this month at 1183 resembles a correction, which means that a trading range may develop through December 1st or December 6th. Resistance is at 1278 followed by 1290, while support is at 1210 and then 1198. If the lower end of support is broken, the chances are that there will be a downside breakout of the range.
Old crop sales should be at the 60 percent mark.
March wheat traded to 701.5 in the electronic session and will likely meet resistance at 710 followed by 730. The rebound from the low made earlier this month at 656.25 resembles a correction, which increases the chances of trading to a new low once the recovery is complete.
Old crop sales should be at the 70 percent level.
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