AM Comments 12/18/14
Thursday, December 18, 2014, 8:12 AM
Submitted by: Dustin Weiner
The markets have been impressive overnight, rallying higher with the focus squarely on wheat. It was choppy/higher to start the night but in the early morning hours the market received confirmation that Russia that they are “using all informal instruments to restrict grain exports” which shot wheat 25c higher. Technically however, the bears will tell you that the wheat chart looks exhausted as wheat is now 13c off the overnight high. As of now, March wheat is 85c higher this month which makes it hard to disagree with the idea that the markets have potentially done enough.
Export sales were out this morning with both corn and soybeans falling right in line with trade guesses. In the outside markets we find bullish inputs with the DOW higher, crude oil bouncing higher, and gold higher.
Overall today look for higher markets but beware of a sell off as the markets may struggle to hold these gains for the entire session. It might be time to reward this market (that has just injected unexpected money into producers’ pockets) with sales.
Corn 4 to 6 cents higher
Soybeans 6 to 9 cents higher
Have a great day!