RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Agricultural

Advances in Open Interest is a Bullish Force Over the Long-Term

Posted 01/07/2019 10:13AM CT | Tony Cholly

The technical action is positive and the corn market seems to have the fundamentals to attract significant fund trader buying in 2019.  Traders are keeping an eye on SA weather this week as the dryness in Brazil could play a major role in this season’s crop. Nearly 2/3 of Brazil’s corn comes from its “second crop” that will be planted after soybeans are harvested. Traders are hopeful that the trade talks with China that begin today will go well. Once tariffs come down, traders believe China can purchase 2-5 million tonnes of U.S. Corn.  Momentum studies are trending higher for corn, which could support a move higher if resistance is penetrated.  The next upside target is 386.  Resistance comes in at 384 ¾ and 386, while 1st support hits at 381 and then 378.

Corn Mar ’19 Daily Chart

Corn Mar '19 Daily Chart

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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.
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