RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Agricultural

Corn Looking for Push from Friday’s USDA Report

Posted 02/05/2019 10:50AM CT | Tyler Herrmann

March corn started the week higher, closing up off the low of 376^4 to end the day at 379^4. The corn market has been trading in a sideways range between $3.70 and $3.85 since October. That sideways channel has narrowed as the market searches for fundamental information to drive it one way or another. Friday we will receive a backlog of USDA data and the consensus of estimates is there will be positive news with a possible reduction of ending stocks. There is also support coming from anticipation that China will be a buyer of corn and other U.S. agricultural products if a trade truce is reached. China is currently at a production deficit of 26.5 million tons for the year making corn high on their list of products needing to buy. Corn export numbers for the previous week came in line with expectations. Trade above 383^0 would push the trend to the upside and momentum studies in the neutral zone would accelerate a move higher. Resistance comes in at 385^0 and then 390^0 with support at 373^4 and 368^0. A close below 376^$ will reverse the trend back to the downside. Look for the market to move higher on good fundamental news. The corn market, while experiencing choppy trade, has shown strength on days when other grain markets traded lower recently.

If you would like to learn more about agricultural futures, please check out our free Fundamentals of Agricultural Futures Guide.

Corn Mar ’19 Daily Chart

Corn Mar '19 Daily Chart

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Tyler Herrmann

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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