“Buying the rumor” was prevalent again today in the grain/oilseed markets, particularly in the 11:00-12:30 CST time frame. First, reports surfaced that China was in the market for US wheat and possibly corn. Later, The Wall Street Journal reported the US Treasury was considering lifting tariffs on China prior to or during the trade talks scheduled for Jan 30.
Finally, as the day went on a senior administration office from Treasury denied the tariff report, but we are still left wondering if there was anything to the earlier report about export demand for feed grains from China?
If you’re like me, days like this make you love the emotionless objectivity of the price charts 🙂
- Wheat leads corn and soybeans higher, stalls again at the 50 day moving average,
- Corn retraces back inside the long term pennant, tests on the upper resistance line for the 8th time since July 31;
- Soybeans hold 100 day moving average, trend line support; will bulls target 200 day MA again?
- Cattle pulls back from upper resistance line of bull channel, winter storm this weekend supports nearby
- Crude Oil showing strength
Contact your broker to discuss your trading or hedging plan!
This article originally appeared in the Technical Ag Knowledge Newsletter “Buying the Rumor **VIDEO Chart Analysis**” on 01/17/19.
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