Soybeans, corn and wheat finish strong: February 16, 2010

March soybeans moved early in the session above resistance levels and stayed there for a strong close. If outside markets remain supportive and commercial buying is steady, DTN says a test of this level could come as early as this week. Demand continues to be strong with export inspections well above what’s needed to stay on pace with USDA’s projection. Year-to-date inspections are 25 percent ahead of USDA’s projected 9 percent increase over last year.

Solid gains in corn allowed the March contract to close above resistance on spillover buying from the other grains and sharply higher crude oil along with the weaker dollar. DTN says buying interest is needed from the noncommercial side due to a lack of commercial support. Export demand is a concern. Weekly inspections fell below what’s needed to stay on pace with USDA’s projection. Year-to-date inspections are 7 percent behind USDA’s projection for the marketing year. 

Wheat futures posted double-digit gains tied to the commodity-wide rally and the sharp sell-off in the dollar. The market may continue its short-term uptrend for a while, but DTN says the longer-term bearish fundamentals will ultimately step back in to pressure contracts. Weekly wheat export inspections fell just short of what’s needed this week to stay on pace with USDA’s projection. Inspections are 23 percent behind last year and 4 percent below USDA’s projected decrease.