Outside market forces are failing to provide much support to corn as the impact of massive beginning stocks continues to hold cash values weak. A supportive Pro Farmer yield estimate and a cool extended Midwest forecast may be enough to help the market forge a near-term low. December corn closed down 2 ¾ cents on the session Friday and down to a new contract low and also closed down 12 ¼ cents on the week. The Farm Journal final results pegged the US corn yield at 167.1 bushels per acre compared to the USDA estimate of 14.153 billion bushels. The weekly conditions update this afternoon should remain stable at 62% G/Ex. If we adjust yields to 166 bushels/acre and old crop stocks are revised slightly lower, US ending stocks would come in near 1.828 billion bushels from the current USDA forecast of 2.273 billion bushels. The resulting 542 million-bushel decline from the previous year would make it the largest drawdown since 2010. The market is oversold basis the COT report and a cold forecast is somewhat supportive. Watch for a technical sign of a short term low. If the market turns up from here, 366 is next resistance.
Dec '17 Corn Daily Chart
Tony Cholly
Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
ESM8 Jun '18 Emini S&P 267125 -2175 Apr 20, 3:59 PM | GCLM8 Jun '18 GBXCrdOil 6840 7 Apr 20, 3:59 PM | ZCN8 Jul '18 GBX Corn 3854 -54 Apr 20, 1:19 PM | ZBM8 Jun '18 GBX BOND 143030 -220 Apr 20, 3:59 PM | IDXM8 Jun '18 ICE $Index 90095 20 Apr 20, 3:59 PM | GNGK8 May '18 GBXNatGas 2739 79 Apr 20, 3:59 PM | GGCM8 Jun '18 GBX CMX GC 13383 -105 Apr 20, 3:59 PM | 6EM8 Jun '18 GbxEuroFX 12332.5 -56 Apr 20, 3:59 PM | ZSN8 Jul '18 GBX Soybn 10402 -86 Apr 20, 1:20 PM |
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