July CBOT corn rallied to a higher close on Thursday trading through the resistance level at the 10-day moving average but couldn’t quite get above the 20-day moving average. Corn has been trading under the 20-day moving average for the last 5 weeks so this is an important resistance level at $3.68. The next resistance level lies at $3.70 and any trade above this level would signal a bullish trend. Overall, the intermediate trend for corn is bearish with support levels at Thursday’s low of $3.61 and long term support at the May 5 low of $3.55.
July Kansas City wheat rallied an incredible $0.34 on Thursday in response to weather concerns, increased demand, and short fund covering. The rally pushed through resistance levels at the 10-day, 20-day, and 40- day moving averages. The primary trend for wheat is bullish but the short term trend has turned bullish with yesterday’s rally. As long as these levels hold the medium term trend will also be bullish. Initial support lies at the April 23 high of $5.28 and long term support lies at the May 5 low of $4.85. Short term resistance lies at the 100-day moving average value of $5.58.
July Soybeans did not show any major changes on Thursday as wheat and corn rallied. Prices are currently hovering above the support level of $9.49 and is currently in a sideways trend between this support level and resistance at $9.97. A breakout below this support would signal a bearish trend.