Surge in Open Interest for December Corn Indicates Funds Building Net Shorts

October 23, 2017 12:56PM CDT

It is a pleasant surprise for the bulls to see all grains trending higher this morning with December corn opening .25 of a cent higher. Outside market forces are a bit negative however with a firm US dollar, weakness in gold, and China futures down 0.4%. However, China plans to auction 4.7 million tonnes of corn on October 26 and 27. The new contract low close on Friday is bearish technical development and leaves 338 as the next downside technical target for December corn. US exporter’s announced the sale of 120,000 tonnes of UD corn to Spain as well as 125,000 tonnes to unknown destination. The export news failed to help support as the sharp run-up in the US dollar and the slow export pace so far has helped to fuel bearish attitudes on corn. Today, I suggest traders look to get long pullbacks this week around the next area of support which this at 341.75 and below there at 340.25. 

 

Dec '17 Corn Daily Chart

 

Dec '17 Corn Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.