CNS Canada –– Corn and soybean futures at the Chicago Board of Trade (CBOT) are mostly moving on technical trading, profit-taking and good harvest weather.
“It’s a technical trade; the range may have moved up a little bit higher than what we had thought,” said Scott Capinegro, senior broker with Highground Trading Group.
Soybeans saw a technical bounce, and now traders are looking at moving averages. “It’s trying to make a turn, but it’s not as constructive as the corn market.”
Soybeans, he said, could move up to $8.95 per bushel in the November contract, but that’s when it will run into resistance (all figures US$).
Soybeans gained 15 cents per bushel from last week’s prices in both the November and January contracts.
As for corn, Capinegro said, traders are watching moving averages.
“The big ones for corn are the weekly and the monthly averages. It did turn to the upside when September went off the board.”
Capinegro anticipated corn will see a pullback in coming weeks. Corn futures in the December and March contracts each gained 17 cents per bushel from last week’s prices.
Traders are using 2010 as a point of comparison in the corn market due to the similarity in weather patterns. In that year, September corn made fresh lows, but then rallied all the way into November; Capinegro said that could happen again this year.
The market will turn its primary focus back toward weather trading as the U.S. harvest picks up. “It’s that time of the season,” he said.
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.