Chicago corn and soybean futures backed away from nearby highs over the past week but could be poised to retest those levels as the underlying fundamentals remain supportive.
"I think we'll need another headline of sorts, whether it be a weather or sales numbers, to push corn up a few more cents," said John Weyer, director of commercial hedging with Walsh Trading in Chicago.
He added that "beans continue to run with the South American weather story." As long as dryness issues continue to slow seeding of the soybean crop there, he said he expects futures will remain supported
November soybeans hit an intersession high of US$10.79 3/4/bu on Oct. 9, while December corn hit a session high of US$3.99 1/4 on Oct. 12.
"I think we'll take another run at those highs," Weyer said.
A close above US$10.48 would be supportive in soybeans, with the next upside target in the $10.70 area.
For corn, nearby resistance in the December contract is seen in the $3.95 to $4 range.
Wheat is doing its own thing, Weyer said, but could push above $6 in the December Chicago contract "if we get anything supportive there." He said the wheat market was trading mostly off world supply/demand news, with weather in the Black Sea region one factor to watch.
Source: DePutter Publishing Ltd.
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