Friday, April 10, 2015
The following are the highlights from the USDA Supply/Demand report for April
U.S. Inventories 2014-15 U.S. Inventories 2013-14
Corn: 1.827 billion bu 1.232 billion bu
Soybeans: 0.370 billion bu 0.092 billion bu
Wheat: 0.684 billion bu 0.590 billion bu
Fundamentals
Another Thursday, another crop report. This time the USDA released its April estimate for U.S. and global grain inventories, as well as production data from South America. U.S. inventories for Corn, Soybeans and Wheat came in slightly lower than pre-report estimates, with the largest decline seen in Corn. However, current U.S. grain inventories are still well above year ago levels, which helped to damper bullish enthusiasm among traders. Globally, grain stockpiles were above estimates, aided by larger production totals for both Corn and Soybeans out of Argentina, which is the second largest South American grain producer behind Brazil. While analysts noted there were few “surprises” in the USDA report, the real concern among market participants is whether global demand will be high enough to absorb what could potentially be another record for U.S. grain production on top of rising global inventories.
Technical Notes
Looking at the daily chart for May Soybeans, we notice prices drifting lower as the market has made a series of lower highs and slightly lower lows for the past 6 months, with the 950.00 level acting as solid support so far. Prices are currently below both the 20- and 200-day moving averages, and the 14-day RSI has turned weak, but has held above oversold levels with a current reading of 37.26. As we noted earlier, 950.00 appears to be solid support for the May futures, with resistance seen at 993.00.
Mike Zarembski, Senior Commodity Analyst
SOURCE: FuturesBlogs – Read entire story here.
