Corn needs help from South America, upside could stay limited

October 17, 2017 9:14AM CDT

The outlook for active harvest in the US and better weather into late October for Brazil, plus the end of a round of talks over NAFTA which do not seem to be going well, are all factors which are helping to pressure the market. The market saw early support only to give way to all of the gains over talk of active cash related selling. The weather looks wide open for harvest profess this week with warmer and drier conditions seen for the next seven days. Some areas in northern Illinois, southern Wisconsin, eastern Iowa, and Michigan may need a day or two to dry out after heavy weekend rains. Some areas of Illinois received more rain over the weekend than they did all of August and September combined. While the market may have already priced in much of the bearish supply outlook, with only 28% of the crop harvested, producer selling is a distinct headwind for the market going forward. Managed money traders are still short and only an event in South America will give way to a short covering rally. December corn support comes in at 347 and 346 with 362 as a major pivot.

 

Dec '17 Corn Daily Chart

Dec '17 Corn Daily Chart

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