Corn and soybeans were weak today while wheat was higher. Traders were nimble in their interest with many sitting on the sidelines until after the report. They remember all too well the volatility and knee jerk reaction created from the September Grain Stocks Report and the October Crop Report a few weeks ago. Guesses for ending stocks of corn are 845 MB compared to 902 MB last month, soybeans 243 MB versus 265 MB, and wheat 855 MB compared to 853 MB. Last week, the trend following funds increased their long soybean position to a record 800 MB. In corn, their longs grew slightly to 1.750 BB, while their short position in wheat fell to 120 MB.
December corn was lower today and struggles in its climb higher from the October low at 542.75. Short-term support is at 580 followed by 570 and 560. Meanwhile, unless there is a close below 542.75, the trend is higher with the potential for a rally to 610 or 655.
Currently, sales should be at 60 percent.
Soybeans: Recommendation Pending
March soybeans have stalled the past couple of sessions at 1298. This appears to be a short-term top with support at 1280 followed by 1270 and 1260. Unless there is a close below 1240, the trend is up with the potential for prices climbing to 1310, 1345 and possibly 1395.
Meanwhile, if we close below this level, the trend is turning down and sales should be increased from 45 percent to 60 percent.
December wheat rebounded to 739 today and has been up for three consecutive sessions. Support is at 715-705. The trend turned up on Friday when prices traded past 728. Unless there is a sell-off below 680, the market is in a position to challenge the high made in August at 868 with the chance for a rally to 880.
Old crop sales should currently be at the 70 percent level.
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