Wheat Prices Could Test Labour Day Lows

BlackburnNews.com file photo by Simon Crouch

Grain Farmers of Ontario Market Analyst Marty Hibbs says price indicators for corn and soybeans are mixed while wheat is down.

Hibbs says wheat prices are heading back down to test support and are now trading at the four dollar level on March’s contract.

He feels a further decline, testing the Labour Day lows of $3.60 could come in the near future if prices fail to hold the current level.

Soybean levels over the last week are approaching the 10 dollar support level on the January contract.

Hibbs notes that’s a 50 per cent pullback from March prices.

The resistance level of $10.70 has been tested twice over the past three weeks yet never closed above it.

The analyst points out prices are currently back to the initial support level of 10 dollars.

Corn prices remain quiet as they hang around between $3.40 and $3.60.

Hibbs says it’ll take a break away in either direction to get a clearer picture of where prices will go, but for the time being a nice price base is being formed.