Market Commentary

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GRAINS

March corn was steady to fractionally higher in quiet pre-report trading overnight. Overnight trading sets the stage for a steady to fractionally higher opening when the day sessions begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 50-day moving average crossing at $4.93 1/2 would signal that a short-term low has been posted while opening the door for a possible test of October's high crossing at $5.21 1/2. If March resumes the decline off October's high, the 75% retracement level of the 2020-2022 rally on the weekly continuation chart crossing at $4.50 3/4 is the next downside target. First resistance is the 50-day moving average crossing at $4.93 1/2. Second resistance is October's high crossing at $5.21 1/2. First support is November's low crossing at $4.70 1/2. Second support is the 75% retracement level of the 2020-2022 rally on the weekly continuation chart crossing at $4.50 3/4.

March wheat was lower overnight as it consolidates some of the rally off November's low ahead of today's WASDE report. Overnight trading sets the stage for a lower opening when the day session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, the 38% retracement level of the July-November decline crossing at $6.53 is the next upside target. Closes below the 20-day moving average crossing at $5.97 would signal that a short-term top has been posted. First resistance is the 38% retracement level of the July-November decline crossing at $6.53. Second resistance is the August 23rd high crossing at $6.68 3/4. First support is the 20-day moving average crossing at $5.97. Second support is November's low crossing at $5.56 1/4.

March Kansas City wheat was slightly lower overnight as the market awaits the release of today's WASDE report. Stochastics and the RSI are overbought and are poised to turn bearish with additional weakness that would signal possible pause in the rally off November's low. Closes above the 25% retracement level of the July-November decline crossing at $6.77 would open the door for additional gains and a possible test of October's high crossing at $6.96 1/2. Closes below the 20-day moving average crossing at $6.39 1/2 would signal that a short-term top has been posted. First resistance is the 25% retracement level of the July-November decline crossing at $6.77. Second resistance is October's high crossing at $6.96 1/2. First support is the 20-day moving average crossing at $6.39 1/2. Second support is November's low crossing at $5.95.

March Minneapolis wheat was steady to fractionally higher overnight. Overnight trading sets the stage for a fractionally higher opening when the day session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above Wednesday's high crossing at $7.47 3/4 would signal that a short-term low has been posted while opening the door for additional gains near-term. If March renews this year's decline, the May-2021 low on the monthly continuation chart crossing at $6.68 3/4 is the next downside target. First resistance is Wednesday's high crossing at $7.47 3/4. Second resistance is the 25% retracement level of the July-November decline crossing at $7.62 1/2. First support is November's low crossing at $6.97 1/2. Second support is the May-2021 low on the monthly continuation chart crossing at $6.68 3/4.

SOYBEAN COMPLEX�

January soybeans were higher overnight as it consolidates some of its recent losses. Overnight trading sets the stage for a higher opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If January extends the decline off November's high, October's low crossing at $12.70 1/4 is the next downside target. Closes above the 20-day moving average crossing at $13.43 would signal that a short-term low has been posted. First resistance is the 50-day moving average crossing at $13.25 1/4. Second resistance is the 20-day moving average crossing at $13.43. First support is the 50% retracement level of the May-July rally crossing at $12.91 1/4. Second support is October's low crossing at $12.70 1/4.

January soybean meal was slightly higher overnight as it consolidates some of Thursday's decline, which saw meal test the 62% retracement level of the October-November rally crossing at $402.20. Overnight trading sets the stage for a slightly higher opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If January extends the decline off November's high, the 75% retracement level of the October-November rally crossing at $389.70 is the next downside target. Closes above the 20-day moving average crossing at $431.00 would signal that a short-term low has been posted. First resistance is the 10-day moving average crossing at $418.00. Second resistance is the 20-day moving average crossing at $431.00. First support is the 62% retracement level of the October-November rally crossing at $402.20. Second support is the 75% retracement level of the October-November rally crossing at $389.70.

January soybean oil was higher overnight and sets the stage for a higher opening when the day session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 50-day moving average crossing at 52.04 would temper the near-term bearish outlook. Closes above November's high crossing at 53.70 would open the door for a possible test of the October 16th high crossing at 55.40. If January extends this week's decline, November's low crossing at 48.53 is the next downside target. First resistance is November's high crossing at 53.70. Second resistance is the October 16th high crossing at 55.40. First support is November's low crossing at 48.53. Second support is the 87% retracement level of the May-July rally crossing at 47.17.