Bullish WASDE propels futures past key resistance
Corn and soybean futures shot past key resistance levels following a USDA report Tuesday that Total Farm Marketing Analyst Naomi Blohm calls even friendlier than anticipated.
“When you look at the breakdown of it, the fact that USDA cut production for corn and soybeans is a big tell because that’s less supply. And we know that demand is strong.”
March corn closed 25 cents higher Tuesday at more than $5.17 a bushel and March soybeans settled at over $14.18 after gaining nearly 46 cents during the session.
Blohm tells Brownfield support is now at $5 for corn and $14 for soybeans.
“Very exciting times, but the bottom line is that we have tight supplies for the grain on hand at producers’ farms that was harvested this fall. So that sets the stage for supportive prices going forward until we get the crop in the ground this spring.”
She says the near-term upside for corn is $5.20 and the target for beans is $14.50.