Corn in position for bounce on oversold condition; lower yields?Posted 08/22/2017 9:35AM CT |
With oversold condition, it will not take much in the way of yield issues to spark a bounce. However, with the massive old crop supply, the upside on any bounce could be limited. The trade continues to target 358.5 low for December corn from August 2016 as a target. The Farm Journal crop tour started yesterday with the eastern leg starting in Ohio and the western leg starting in Nebraska with early findings a mixed bag. One comment that summed up best from South Dakota was “I have not seen anything in corn that’s disappointing nor impressive”. The top ten corn producing states saw either a 2% improvement or a 2% lowering in G/EX rating. Basically, not much change. The 6-10 and 8-14 day forecasts have below normal temperatures with normal precipitation for Illinois and Indiana from August 27 to September 4. The open interest in corn went up 6,000+ contracts on Friday and has increased over 32,000 contracts over the last five trading days. There were varied results from the first day of the Farm Journal Tour. The august 2016 low of 358.5 is the next downside support level for December corn. Close in support at 361 with resistance at 371 and 375.
Dec ’17 Corn Daily Chart