Grain Markets Face Downward Pressure as Moving Averages Signal Weakness
The grain markets are at a crossroads as evidenced by their moving averages. In corn, the current price of $522'0 is below the 7-day MA of $529'7, indicating a bearish trend. The 14-day and 21-day MAs are also below the current price, further supporting this assessment.
The market has weakened sharply from its high on September 1 at $546, with the current price falling below all three short-term averages. This suggests that sellers remain in control unless the price can reclaim the $530-$533 area.
Key resistance levels for corn include $530'0 to $531'5, representing the 7-day and 14-day MAs, while major resistance is at $533'1, which marks the 21-day MA. Support levels are at $519'2 and approximately $514'6.
In soybeans, the current price of $1297'75 is below all three moving averages, with the averages tightly clustered between $1312-$1313'5. This zone represents the key near-term battleground for prices to recover or continue downward.
The preferred bias while prices stay under the MAs is to sell rallies into the MA cluster of $1312-$1314, with a stop above $1320 and targets at $1288-$1290 first, then $1277-$1280. Counter-trend longs should only be taken if the $1288 level holds again.
In wheat, the current price of $692'6 is below all three moving averages, with a strongly bearish alignment. The market has fallen nearly 90 cents from its early-September high near $782'4, and short-term momentum remains negative.