RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Corn prices continue to coil up in this wedge pattern that is forming on the charts. The increase in coronavirus cases in Hubei provinces weighed on the corn market as that cast fresh doubt on whether China can meet their target of U.S. corn and DDG purchases. There is rain in the forecast for South America growing regions, particularly for Argentina next week. This will also weigh on prices. Buenos Aires Grain Exchange did lower their forecast for argentine 2019/2020 production from 50-million tonnes down to 49-million tonnes. Sales will need to average 675,000 tonnes per week to reach the USDA forecast. Hubei, the province at the center of the epidemic, reported almost 15,000 new cases after revising the way they diagnose the virus, which undercuts the idea that the virus was slowing.  Cash basis is better than normal and bull-spreading is also helping support the market.  Per usual, demand concerns remain the big story in corn. The next area of resistance is around 381 and 383 with support at 377 and 376.

Corn May ’20 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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