Balances corn were increased in both the US and in the whole world. In particular, stocks in the US by the end of 2015/16 marketing year should reach 1.862 billion. Bushels, which is 50% more than 2 years ago; stocks around the world have to make 208.9 million tons, + 1.5 million compared with the March USDA report and + 34 million for 2 years. In the wheat market situation is similar to the corn market, the overall global balances increased by 800 000 tonnes, mainly due to the EU, to 733.1 million. tons. In the US ending stocks must pass 976 million. bushel, the highest value since 1987, the main growth caused by a weak export that the worst of the 40s of last century. Soy complex only with agriculture on which the projected growth of turnover of world trade, and by active exports from the US, expect lower ending stocks in the country to 445 mln. bushels, but the world provide little growth, mainly due to South American countries, to 79 mln. tons. Thus, we can conclude that the trend continued yesterday's data offset value balance in favor of the proposal, so the fall in prices should continue. In May will be the first time published forecasts for the 2016/17 marketing year, which is likely to confirm the current situation.
The May contract for corn ended last week with growth of 8.25 cents a bushel, but still term trend remains downward, while between the support level of $ 3.47 per bushel (near the current minimum contract) and the level of resistance of 3.74 dollars per bushel (4-week maximum). Weekly stochastic supports slightly upward trend while at the oversold level of 20%.
The May contract for soybeans finished last week with a drop of 1.5 cents, but the remaining term trend of rising confidence that growth and confirmed earlier this week to new local highs. But the most active buyers has led to the lifting futures to overbought zone and in the near future may correction of the level of support - 939 cents per bushel. Also, the pressure may come from hedgers who use this level to fix prices.
July wheat contract was the leader of the fall of last week's losses amounted to - 16.25 cents a bushel. Contracts old and new crop established a strong bearish trend and the nearest support level - 4.41 dollars per bushel. The level of resistance even at the price of $ 4.80 per bushel, the histogram MACD below zero support falling prices.