Soybean meal, after rising nearly $ 60 a tonne, has strong resistance above Monday’s trade
Since mid-August, crude oil futures have been on the rise, but have finally come to a halt as they encountered long-term resistance on the monthly charts between $ 85 and $ 90 per barrel in December. Crude oil futures have slowed down this rapid rise and have actually corrected over the past few weeks, possibly with a double top. The impetus behind the fall in prices appears to be concern about slowing economies, as inflation has skyrocketed and a possible rise in interest rates becomes more real. With the recent increase in COVID cases in parts of Europe, including Germany, these countries are once again considering temporary closures or new restrictions. If that were to happen, it would certainly undermine some of the demand for gasoline and therefore for crude oil. It looks like December crude is not over with the correction, but further decline should find strong support first at $ 75 a barrel, then major support at $ 72 to $ 73. We could do it, but this area should have strong support.
FUTURE OF THE MAS OF DECEMBER 2022:
New crop corn futures (2022) prices have been on the rise since early July, fueled by soaring fertilizer prices, suggesting corn acreage may be compromised. The market continues to advance, with only modest corrections. Currently, December 2022 futures are less than a dime from the recent high, and the market is far from overbought. It looks like a rally and close above $ 5.60 could lead to further gains for new crop corn futures. The market appears to be on the rise to stimulate demand for more acres of corn in the coming year. Right now, it looks like the uptrend for new crop corn is far from over, unless we see a collapse in old crop corn futures.
The comments above are for educational purposes and are not meant to be specific business recommendations. Buying and selling grain and soybean futures involves substantial risk and is not suitable for everyone.
Dana Mantini can be contacted at [email protected]
Follow Dana on Twitter @mantini_r
(c) Copyright 2021 DTN, LLC. All rights reserved.