RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Agricultural

Contract Low Looms as Open Interest in Corn Rises

Posted 01/09/2018 9:26AM CT | Tony Cholly

Sinograin, China’s state grain stockpile sold all 26,719 tonnes of corn offered in the first sale of 2018.  The grain was from the 2014 harvest and is the first sale since October.  Originally the state auctions were to restart in May, but demand from feed mills and processors has been robust.  March corn settled down 4 cents at 347 ¼ on Monday.  The market traded down to a low of 346 ¾, just ¼ cent from the contract low.  Corn was pressured by forecasts of increased rain potential in Argentina as well as the possibility of an increase in US ending stocks in this Friday’s report due to reduced exports.

The US November corn exports were seen at 2.59 million tonnes, down 35.9 from last year’s 4.04 million tonnes.  Large declines from Japan, South Korea, and Taiwan were seen with Mexico’s imports up 5.3%.  US exporters announced the sale of 102,100 tonnes of corn to Mexico yesterday.  Monday’s weekly export inspections for corn came in at 849,226 tonnes. 

With Argentine dryness issues starting to decline and Friday’s USDA report expected to show burdensome supplies, the bear camp has taken control.  The market traded within a ¼ cent of the contract low of 346 ½ yesterday.  A close below this level will likely extend down to the swing low of 343 ¼.  The ultimate target for the bears should be around 335.

Corn May ’18 Daily Chart

corn_may18_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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