RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Agricultural

Corn Market In a Position For a Bounce

Posted 07/24/2019 1:41PM CT | Tony Cholly

The corn market has been a crazy mess this spring/summer. It started with major planting delays and what did get planted, was planted on wet ground. This makes for shallow roots and unhealthy corn. This was followed by a dry spell, which lasted so long it became burdensome to corn yields. Weather is improving, and the market is pulling back because of this.

On June 30th, the USDA released projected planted acreage and somehow came up with 91.7 Million acres. These numbers were from a June 1st survey and at that time most farmers “intended” on planting.  The USDA flat out said they messed up and began to re-survey 14 states, which they will release August 12th.  We believe the 91.7 million will drop below 85 million acres, and some research companies are pegging their numbers at 81-82 million acres.  On top of this, the stress on the crops should drop yields into the 150’s, which is just another bullish factor.

We are looking at getting some long exposure through the August 12th report.  December corn support comes in at 427 and below there at 420.  Resistance comes in at 435 and 438 today.

Corn Dec ’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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