RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Corn: Corn has posted lower highs and lower lows every day this week, and now has given back all but 5 cents of its gains from June 30th USDA report. Corn has sold off in the face of fairly strong demand out of China. They had their largest single day purchase ever and Corn mustered a 3-cent rally, to me this is showing there is a lot of weakness in corn still. Weather outlook remains favorable but be sure to keep an eye on C. Iowa and W. Iowa, where they badly need to get some rain. Iowa is a major corn producer and if yields are lowered in these areas, it can potentially hurt the overall yield unless other areas make up for this. At the end of the day, I think corn can struggle to trade near or under $3 in the December contract, but I would not be surprised to see new contract lows if weather remains favorable, especially if those dry areas get much needed rain heading into pollination. Monday’s crop progress will most likely set the tone for next weeks trade. Technically speaking, there is still that gap sitting up around $3.43 that eventually should get filled, but if we see those levels, I think you need to be trying to sell there, especially if you are a producer needing to lock in prices.

Soybeans: Soybeans have been mainly trading the charts in my opinion. They touch the top end of the channel and almost immediately back off to test the lower end. This has been happening since about mid-May, except for the June 30th report where we broke out and hit longer term resistance at $9.10-$9.15 level, then dipped right back into the channel, where we remain today. The fundamentals are still torn between good weather and strong demand, with demand somewhat winning this battle, which is why the market remains in this upward channel. I expect this to continue until the fundamentals give the market a reason to break out, whether it be higher or lower remains to be seen.

Corn Dec ’20 Daily Chart
Soybeans Nov ’20 Daily Chart

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!

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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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