Honestly, the markets were already in the throes of a rally before the report based on a warmer weather outlook and lack of moisture in the forecast for the week. Dec 13 corn closed up .22 cents on the session at $4.8550 after it took out resistance at $4.7600 and hit what we can only guesstimate were stop orders for those traders and funds that still had a number of positions to the short side. Later in the afternoon, we received the crop progress report which came in at 61 percent rated good to excellent overall this week vs. 64 percent the week prior. We will be looking for the market to continue its bullish theme again today, barring any news or events.
The $4.90 and $5.00 marks for Dec.13 corn are your next areas of resistance, so we will watch and see how the market reacts as we approach those levels.
Beans get their own paragraph today as they made a move higher over some key numbers that we have to talk about. Nov. 13 beans opened the night session on Sunday .02 cents over the 200- day moving average at $12.7000 and never really looked back. This is a big technical signal for strength and we expect the trend to continue to the upside for the near term. Add into that move the fact that export numbers were higher than expected and crop progress ratings came in at 62 percent good to excellent vs. 64 percent last week and you have enough keys in place to support a rally to the upside on bullish news. Nov. beans were up .44 cents on the day to settle out at $13.0300, and we saw funds add to their net long position throughout the day.
This morning, we look for corn to open 3 to 6 cents lower and beans to open 10 to 14 lower.
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