[Farmmarketnews] Weekly GFO Grain Market Commentary

Thu Mar 23 17:50:04 EDT 2017

Ontario Grain Market Commentary for March 22, 2017 by Marty Hibbs, Grain Farmers of Ontario

Wednesday, March 22, 2017 Closing Prices

COMMODITY

PERIOD

PRICE

WEEKLY MOVEMENT

Corn CBOT

May

3.58

↓

        05

cents

Soybeans CBOT

May

9.98

↓

00

cents

Wheat CBOT

May

4.21

↓

        15

cents

Wheat Minn.

May

5.38

↓

02

cents

Wheat Kansas

May

4.31

↓

15

cents

Chicago Oats

May

2.52

↓

05

cents

Canadian $

June

.7510

↑

0.00

points

CORN:  As indicated in last week’s commentary, a correction is underway in the May contract after receiving a red sell signal on March 10.  Tuesday, February 28 marked the highs of the recent run-up, and since then we continue to probe the downside for solid support before we attempt another challenge of those highs. Our first good support line is around the $3.50 level on the May contract while our major overhead resistance level is around $4. Short term indicators are negative and the main trend is still down.

SOYBEANS: Repeating again from the last two weeks, our red sell signal from February 22 is still intact, and the May contract has now dropped forty cents to date. Our six-month-old up-trend line still remains under attack as the May contract refuses to make any significant closes below the $10 support level. This looks like just a matter of time as the downward pressure continues on all of the grains. Our May contract needs to stay above $9.85 on a close basis or risk a possible test of the $9.50 support area from last summer.Short term indicators are all negative and the main trend is still down.

WHEAT: Our key reversal from February 16 is behaving as expected. That rally took us temporarily through the $4.65 down-trend line before closing that day with a strong reversal. Since then we have been in a corrective mode. A red sell signal on March 13 confirmed this correction is still ongoing. At this point I feel a close below $4.20 on the May contract would suggest a strong possibility of a retest of the May contract lows of $4.05. Short term indicators are still negative and the primary trend is still down.

Harvest 2017 prices as of the close, March 22 are as follows:
SWW @ $199.32/MT ($5.42/bu),  HRW @ $199.32/MT ($5.42/bu),
HRS @ $229.92/MT ($6.26/bu),  SRW @ $199.32/MT ($5.42/bu),

Blair Andrews
Editor, AgriLink and Farm Market News
University of Guelph, Ridgetown Campus
Tel. 519-674-1500<callto:519-674-1500> x 63577
Fax. 519-674-1530<callto:519-674-1530>

Click on this link: farmmarketnews-unsubscribe at list.gfo.ca  to unsubscribe from this report.
This Farm Market News product is sponsored by:
Grain Farmers of Ontario

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.sentex.ca/pipermail/farmmarketnews/attachments/20170323/71f69693/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: March 22 2017 Commentary.pdf
Type: application/pdf
Size: 580397 bytes
Desc: March 22 2017 Commentary.pdf
URL: <http://lists.sentex.ca/pipermail/farmmarketnews/attachments/20170323/71f69693/attachment-0001.pdf>