Wheat is traded now at eight month lows, as we can see on the chart under the 7$/bushel support. This is mainly because the World crop forecast got to 690 m tons. In the USA the snow that fell over the wheat fields is helping the grain, the forecast is of 53 m tons and for Europe of 138 m tones. From the technical point of view the price is getting closer to the trend line.
Corn is currently traded at 7.12$/bushel, a little higher than wheat. It has consolidated itself over the 6.75 support but the pressure is still down. Brazil it’s likely to surpass US as the biggest corn exporter. It is estimated that until September this year, Brazil will export 24.5 million tons while, US will get only at 24 million.
WASDE (World Agricultural Supply and Demand Estimates) will release its latest report today, at 11:00 Chicago time or 17:00 UK time, and it is expected to upgrade the forecast for the US corn and wheat stocks at the close of 2012-2013. This might trigger lower moves for the grains.
Getting the discussion back to the chart we will see that they are quite well correlated, so it is a very good chance for corn to follow wheat under the 700 level, especially if the report will be in the direction of the speculation.