RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Corn: The story remains the same in the corn market. Weather. Will farmers be able to get the heavy machinery into the fields to do the work they need to be done? Will Tuesday’s crop ratings come in above, below, or as expected?

China sold 2.1 million tonnes out of 2.3 million tonnes offered on Friday on top of 3.34 million tonnes sold yesterday. China auction sales have increased recently due to the pent up industrial and ethanol usage. July corn was pulled lower by a weaker soybean complex yesterday, settling down 2 cents on the day. Pressure was also tied to a slightly drier forecast for northern sections of the eastern corn belt. The problematic areas of Missouri, southern Illinois, and southern Indiana could still see more rain this weekend. Some areas have been able to dodge the wet weather and Tuesdays report should show about 90% completed compared to 5 year average of 91%.

Beans: Slowing down demand in China gives a bearish tilt to the soybeans. With Chinese crush margins the poorest since August and meal stocks on the rise, there is talk that some crushers may slow operations. Imports, however, are expected to be high for June and July. Strong demand from China has been the key supportive force in the past 10-12 months, so the weaker demand tone helped to push July soybeans down through the August 2 lows yesterday. Selling pressure was also tied to a slightly drier outlook for the corn/bean belt this weekend except in Missouri, Southern Illinois, and Southern Indiana. Weaker Brazilian currency also gave way to increased producer selling out of South America. The realization that even with high demand in China, world soybean supplies are going to be large which has led to the break this week and if Brazil currency drops again, commercial selling could pick up again. Downside targets in July soybean is 919.


Dec ’17 Corn Daily Chart

Dec '17 Corn 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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