AM Comments 3/22/16
Tuesday, March 22, 2016, 8:03 AM
Submitted by: Eric Kist
The grain markets are treading higher again so far today, as corn is up half a cent, and soybeans finished the overnight session up 3 ½ cents. Beans have been quietly climbing higher throughout the month on reports of declining palm oil production out of Malaysia, and are now garnering support from technical indicators as well. Malaysian palm oil futures are currently trading at the highest levels in two years, as concerns that El Nino weather conditions will limit production this year. This spillover support into soybeans now has the May bean futures contract trading above its 200-day moving average, and at its highest level since early December. If soybeans are able to close above the 200-day moving average at the end of the day today, it would be the first time since last July. Corn futures are also benefitting from spillover support from higher beans and wheat futures, but a stronger Dollar and weaker crude oil prices will try to pressure grains throughout the day. Since March 1st, May corn futures have added 13 cents, and May soybean futures have gained 44 cents.
Otherwise, limited news to talk about this morning. The next major piece of fundamental news will come at the end of the month as the USDA is set to release its Prospective Plantings report March 31st. Until then, the market will continue to search for news, and perhaps pay closer attention to technical details.
Corn: Steady/1 higher
Beans: 3-4 higher
Have a great day!