Corn and soybeans flirt with support following not-so-friendly stocks report
A market analyst says Thursday’s bearish quarterly stocks report has corn and soybean futures testing key support levels.
In fact, Naomi Blohm with Total Farm Marketing tells Brownfield bean prices did dip below support after USDA released the numbers.
“So we need soybeans to get some friendly demand news soon, or we could see the funds just do a big technical selloff lower.”
Support for November soybeans is the June low of $12.40 1/4. For December corn, it’s $5.25.
She says at 256 million bushels, the soybean carryout was significantly higher than what traders were anticipating.
“But when you step back and look at these charts, we have tight supplies now. And the harvest that’s happening isn’t a record harvest by any means, so these tighter supplies should continue into next year.”
But Blohm says the market is mixed with questions about U.S. crop size, global demand, as well as the debt ceiling and its impact on the value of the Dollar.