Grain markets maintaining momentum

Corn and soybean futures were mostly higher Friday following significant gains earlier in the week.

Northstar Commodity chief analyst Mark Schultz says short-term demand continues to impress as famers become reluctant sellers.

“It’s been a little bit harder to pry corn from the farmers’ hands, or at least for them to make some sales. So we’ve seen the demand come back in for corn, basis levels firming up, and that wasn’t getting the job done. So eventually we saw the futures move higher.”

He tells Brownfield a dry weather pattern that could hurt double-crop corn in parts of Brazil is also feeding the bull.

“Here in the next two to three weeks a lot of that corn will start to pollinate, and that (crop) is going to need some moisture. If they don’t (get it), we’re going to start seeing what should be some significant yield losses.”

Schultz suggests May corn futures have moved past short-term resistance and says the next target is between $6.85 and $7.30 per bushel.  For soybeans, he says if the May contract closes above $15.40 more than once, the next level of resistance will be around the 2013 high of $16.30.

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