Grain futures were firmer today in light of strength in the dollar. The greenback is underpinned by concerns of the debt crisis spreading in Europe. Moody’s rating service has announced that France’s AAA rating may be downgraded. Be advised that the contagion in Europe will continue to get worse, and eventually, is headed in our direction. Meanwhile, beneficial rain fell in Argentina over the weekend, but heat is in the forecast for the next ten days. This is propping up corn and soybeans, while wheat is supported from quality issues in Australia. Volume this week, and next, will be light as traders are closing the book for 2010.
March corn worked its way to 604 today and is in the target zone of 600-607 where a short or an intermediate-term top could develop. Unless there is a setback below 586, the overall trend is up with the potential of rising past the November high of 617.25 to 635. A major top could unfold during late December-early January.
Old crop sales should currently be at the 70 percent level.
March soybeans traded to 1329.5 today and are on track for advancing past last month’s high of 1354.5 to 1365, 1400, or possibly 1420. This is contingent upon staying above 1307, and especially 1295.
Old crop sales should be at the 60 percent mark.
March wheat was stronger today and is on course for a move upward to 825 unless it falls below last week’s low of 742.
Old crop sales should be at the 70 percent level.
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