RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

USDA’s foreign agricultural service indicated China corn production in the 12-months that start October 1st may fall to 250M tons from 257.22M this year. The short term technical action remains positive and there seems to be more upside potential in the near term as opposed to downside. The traders seem to see lower harvested acres and still potentially lower yields unless we see ideal conditions over the next 3-4 weeks. Ear weights were already considered low for the September report and those numbers can drop if harvest is cut short. The warm temps are a double-edged sword. Less chance of frost, but less time for filling on late planted crops. If harvested acres drop to 77.9 million, as opposed to 82, then ending stocks slide to 1.383 billion bushels compared to estimates of 2.190 billion. The next area of resistance comes in at 374 and 376 with support coming in at 370 and 368.

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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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