Apr 26, 2024

Wheat added to its recent rally while corn and soybeans were slightly pressured. A large precipitation system that’s expected to bring rainfall to about 75% of the corn and soybean growing areas materialized earlier today and rain is forecasted to continue off and on through Monday. On the opposite side of the coin, this same system is expected to miss about 50% of the wheat growing area. Corn stayed within a 4-cent range today while soybeans traded a relatively tight 8-11 cents. This week’s rally has been well-received by everyone and there’s been a fair amount of old and new crop pricing done this week but volatility has decreased from what we've become accustomed to over the past few years. Look to use corn sell orders spaced out in 12-15 cent ranges compared to the 25 cent ranges we've been using.  But for now, we will use 25 cent increments until this rally gives us a negative signal.  Also, soybeans sell orders may be better utilized in 25-30 cent increments rather than 50 cent increments.

We had another chance at $4.25 new crop corn today before fading lower to the finish. This is a price target we set a few weeks back after taking into consideration our October downtrend and 100-day moving average. Those could be some very stiff areas of resistance. Still recommend a sale at $4.25 and if the market can push through our nearest resistance areas, another target just under the gap on the chart at 503’0 for another round of new crop pricing. 

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