Corn: Like last week, corn began the week moving lower on Monday and Tuesday, running into support @ $3.30 (lows on the week) along the upward trend line. Along with hitting support, the demand out of China has remained steady this week, causing corn to bounce back on Wed/Thurs and began pushing back towards the highs of the week $3.40 that was put in on Monday before it sold off. Watch for continued choppy trade if weather stays good and we don’t see any extended dry/hot stretches in the forecast. COT has a large net short position for funds, so that is one thing to keep an eye on. Bullish news can spark a decent short covering rally if the gap is filled and continues higher through resistance.
Soybeans: Soybeans, unlike Corn, began the week initially moving higher and running into resistance at the top end of the trend channel. ($9.02) Resistance held and we saw soybeans sell off on Tuesday on news of better weather mixed with a better crop progress report. China demand remained extremely strong with China purchasing beans for 8 straight trading sessions. Soybeans are hanging around the top end of the channel still and seem to have backed off this morning after touching resistance. Watch for beans to break this trend if China demand continues, but if we see bearish weather and less demand, I fully expect a move back to the lower end of the trend, which is circled on the chart below.
If you’d like to learn more about the agriculture markets, please request our exclusive 2020 Grain Futures Outlook. If you have any further questions or needs, please contact Tony Cholly at 1-800-826-2270 or email him at tcholly@rjofutures.com
Our 2020 Grain Outlook Includes:
– World Corn Outlook – Stock Change vs. Usage Ratio
– U.S. Soybean Export Sales and USDA Forecast
– U.S. Planted Wheat & World Wheat Production
– And Much More!
