Good to Excellent Conditions Unchanged on Corn

August 28, 2018 12:04PM CDT

December corn traded down to 357^4 yesterday, its lowest point since mid-July. The corn market has traded lower recently, pressured from positive weather forecasts and weakness in the soybean market. Monday’s agreement on a deal between US and Mexico that would replace NAFTA also brings some support to the market. Crop condition ratings showed good to excellent ratings unchanged at 68% as well as poor to very poor at 12%. Good to excellent is up 6% in compared to both last year and the 10-year average. Ending stocks still look to be 425 million bushels short of last years number, and that coupled with stronger demand could cause a late season rally. The December market has found support in this 358^0-360^0 area and momentum studies are approaching oversold levels. A close above 366^4 is needed to reverse the trend while a break below 355^2 would extend the downside back to contract lows. Although the corn market has traded lower recently, down 20 cents since last Monday, it has held up relatively well compared to the weakness in soybeans and wheat which are both down about 60 cents from the same time. If December corn can hold and or build additional support here we could see a rally higher, especially if we see any surprises with yields during harvest.

Corn Dec '18 Daily Chart

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