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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Tyler Herrmann

Senior Market Strategist
Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.
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