RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Daily Market Update – Grain Futures – 9/8/2017

Posted 09/08/2017 10:24AM CT | Stephen Davis

Feel free to contact Stephen here to leave a question or comment on his video.

 

Transcript for: Daily Market Update – Grain Futures – 9/8/2017

Hello Traders, I am Stephen Davis senior market strategist, RJO Futures. Friday morning September 8th here to talk to you about the grain markets.

 

Corn Market

Okay whatever the yields are going to be in corn and beans here in the weeks ahead, there’s going to be ample grain around. It’s the middle of September it’s not the best time for corn and soybeans seasonally to trade higher, and yet the charts seem to want to do that. So this is something that we’re going to look at here in one minute time. You know, harvest time all this grain is around and this is the reason the Chicago Board of Trade was created in the 1850s, so the U.S. farmer could sell their grain at any time. So just a brilliant, good for capitalism, good for the US farmer.  Our first chart today of corn you can see we’re building a base here, we’re trading a little bit higher, the managed funds are short, so we’ll see where we go with this. There is a September crop report next week, I’d caution everybody, it’s still a little bit early. The October crop report we’ll really get a good good feel on yields, and nonetheless I think the million dollar question is what if the demand is better than anybody’s talking about? We’ll start with exports and export sales this morning on new crop corn and new crop soybeans. Very stout, very good, let’s see if this is can continue. This is the key going forward the US dollar is lower here, this is good for our exports, so it’s a good story and you can believe we’re going to keep talking about it.

 

Soybean Market

Good export sales out of soybeans USDA this morning, that’s important. You can see our chart on soybeans we gapped higher earlier this week. Markets are not supposed to do that here in the middle of the September. I don’t know if it means anything or not, but my work when we don’t fill these gaps here, this becomes bullish in the short term. We’ll kind of see how this all plays out.

 

Wheat Market

The wheat market is our next chart here, I don’t know you can see we’re in pretty good support. There’s a lot of wheat in the world like I’ve mentioned last week, I think the key to the wheat market is prices of Russian wheat, and they seem to be stabilizing this week. So we’ll kind of see if wheat is bottoming too. Keep in mind wheat and corn are trading cousins and if the corn can go up, I think wheat can go up too, so we’ll keep an eye on all of that.

 

Other than that, everybody have an excellent weekend! Thank you.

 

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Stephen Davis

Senior Market Strategist
Stephen E. Davis is a 25-year+ veteran of the markets, who has been a retail broker with RJO Futures since 1998. He is a graduate of the University of St. Thomas in Minnesota and started as a runner at the Mid America Commodity Exchange in 1981. Davis' past experience involved working with firms Stotler Grain, O'Connor Grain, Dean Witter, R.J. O'Brien and Rosenthal Collins. His trading floor experience in agriculture and financial markets is the foundation of his brokerage approach. Throughout his career, he has worked with clients ranging from retail clients to some very large institutional clients. "My focus is on price and my philosophy is that chart patterns will show you where the big money is made," he says.</p><p>In his time as a broker, he has seen an evolution of the trading process. "As all of these markets move from the trading floor to the computer screen, we are all like locals on the trading floor-and we do not have to pay millions of dollars for our memberships." His advisory experience includes CQG, Moore Research, Dennis Gartman (The Gartman Letter), The Hightower Report, Financial Times and the Wall Street Journal.
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