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Corn futures may have bottomed

Agriculture.com Staff 08/18/2008 @ 8:10am

Historical Price Trends: best odds for the week of August 18, according to our HPT page is for CBOT October Live Cattle suggesting 80% odds of lower trade by the end of next week, vs where futures closed on Friday Aug 15. The average decline has been 117 points. Please access our Historical Price Trend page for the balance of the commodities odds for next week.

For The Week: for the week of August 11th, September corn futures value increased 6%, September soybean futures value increased 3% and Sept CBOT SRWW value increased by 3%.

For The Month: thus far for the month of August, Sept corn futures value down 11%, September soybean futures value down 15% and September CBOT SRWW value up 5%.

Technicals: For the short term trader, Allendale uses its own unique custom Moving Averages to monitor price momentum, define key support and resistance levels as well as advise where key pivot points are located when bulls may turn bearish and bears to turn bulls. We also include last weeks closing price for the weekly chartist as we draw closer to the end of the week to anticipate the possibility for futures to have a positive weekly close or if weakness is ensuing. A detailed technical look at the grains and livestock are available within our Allendale Advanced Charts.

Conclusion: most immediately corn has support of its identical #1 and #2 Moving averages for Sept and Dec futures but overhead resistance of the pivot point. Technically the trade could be willing to buy against the support and use a target of the pivot point.

Price Projections: Allendale's December corn futures price projections suggest futures may have bottomed and now point to a move higher to the 6500 level. What this may suggest is for end users to lock in inputs at present levels and cover with longs puts in case crude oil continues to drag futures lower. Producers may want to buy calls at these lower levels and use a target very near the 6500 level to catch up on hedges for 2008 corn production.

Price Projections: Allendale's November soybean futures price projections suggest futures may have bottomed and now point to a move higher to the 13750 level. What this may suggest is for end users to lock in inputs at present levels and cover with longs puts in case crude oil continues to drag futures lower. Producers may want to buy calls at these lower levels and use a target very near the 13750 level to catch up on hedges for 2008 soybean production.

Price Projections: Allendale's December wheat futures price projection suggest futures may have bottomed at the 7800 level and now point to a move higher to the 900 level. What this may suggest is for end users to lock in inputs at present levels and cover with longs puts in case corn and soybeans technically pull futures lower. Producers may want to buy calls at these lower levels and use a target very near the 9000 level to convert present hedges to the cash market.

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