RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

While the corn market has not shown that much direct impact from the big picture developments, prices should be supported as a result of definitive risk on vibe in equities, favorable Chinese economic data and from news of a South Korean KFA purchase of 66,000 tons of corn. While the trade deal agreement calls for China to purchase at least $40 billion of agricultural products over the next two years, compared with a 2017 base of near $24 billion, traders are still skeptical that China will actually purchase that amount. It would take “extremely” aggressive purchases of grain products to fulfil this commitment.  This is what sparked aggressive selling in grain markets over the last couple trading sessions; people are unsure this commitment will be reached. While this is a concern, the market seems to have bottomed out, at least in the near term from this bearish demand news.  In fact, moving forward demand news seems to have a good story just ahead. Resistance comes in at 381 and 391 while support hits at 369 and just under that again at 366.

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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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