Grain markets choppy at mid-day | Monday, November 21, 2022

Grain markets choppy at mid-day: 11:00 AM

The grain markets are under pressure in another choppy day of trade.

The weather forecasts are favorable for South America and crude oil and energy price are sharply lower.

Funds are holding long positions in corn and soybeans and the risk is they will liquidate positions in a thin market later this week.

The December to March corn spread is now out to 3¢ and I expect that to widen out as we approach the first delivery day on the December contract.

The key price support level I am watching in crude oil is at the September low at $75.70. Closing below that support level this week projects crude oil down to the next level of support at $68.00. Last year, energy prices put in a major low in late November. Will that work again in 2022?

At this time, December corn trading is 7¢ lower. January soybeans are down 4¢.

Wheat futures are 7¢ lower to 2¢ higher.

Livestock futures are mixed, with hogs lower and cattle and feeder cattle higher.

Grain markets start the week mostly lower: 9:00 AM

The grain markets are mostly lower in the early trade on Monday. The Argentine government is again changing the soybean currency ratio to allow farmers to get about 22% more for their soybeans than last week. This will likely create a massive amount of soybean sales again in late November.

Crude oil is sharply lower again today, taking out major support at $75.50. The extreme weakness again this week is putting pressure on the commodity complex.

Around the world, stock prices are mostly lower. In China, corn prices are higher, with soybean prices lower. Wheat futures on the Matif exchange and Europe wheat futures are 4¢ lower.

The chart patterns I work with project a potential low late this week in the corn and soybean market. Look at the 20 to 21 day low to low pattern.

At this time, December corn trading 3¢ lower. January soybeans are down 3¢. Wheat futures are 8 to10¢ lower.

Cattle futures are higher after the bullish USDA Cattle on Feed report from last Friday, while hog futures are lower.

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