Big crops did get bigger, but looking at prices one would never know it. Technically, the market is still positive, but has approached the overbought area. The market is is going to need to continue to feed the bull.
South American crops are getting better. The rains that are needed came and the areas that received excessive amounts have started to dry. The market has concerns that the changes from our new administration might create trade wars.
On the positive side,125mt corn sale was announced for unknown destination. Also, there is talk of fewer corn acres being planted this season. It is cheaper to plant soybeans, and the return is greater. With the lack of any new friendly news, the improved South American crop, and concerns of trade war, it is difficult to be long at these levels.
Series 3 Licensed
Senior Market Strategist
Gerry has more than 30 years of experience as a licensed stock and commodities broker. His background includes working with Swift Henke in back-office operations; H. Hentz, where he handled the stock order desk; Drexel Burnham, where he helped set up the commodities operation in Chicago and did business with commercial and retail clients; and Smith Barney, where he served commercial and retail customers. Prior to joining RJO Futures, Gerry worked with retail and commercial hedge customers at MF Global.