Agricultural

Mid-Week Grain Update w/Tony Cholly – 08/19/2020

Posted 08/19/2020 8:31AM CTTony Cholly

Corn: Corn this week started out strong moving all the way up to fill the gap back from July 11th-14th weekend. The main catalyst for this move was initial fears of damage caused from the Derecho that moved through Iowa, Illinois, Indiana and Michigan, but causing its most damage to Iowa. Although there will be damage to Iowa’s corn crop, other parts of the country are reporting projected record yields that may offset some of this.  So not only did the chart technically fill a gap and run into a couple MA’s, but the fears being offset by other states are the main reason we saw corn fail after filling the gap and since moving lower. I expect corn to pretty much move sideways until we get any new catalyst for a move higher or lower, but until then I would expect trade to remain between $3.30-$3.50.

Soybeans: Soybeans, for the same reason as corn, saw an initial pop this week based on fears of damage done to crops in Iowa. South Dakota, Minnesota, and a few other states are expecting great yields this year based on reports from the most recent crop tours. Technically speaking, the chart broke through a couple levels of resistance this week, and although we are back into the top of this trend channel, the market remains well supported, so I don’t expect pull backs to be long-lived. Although soybeans range is larger, I do expect them to stay between $9.25 and $8.75 for the time being, until there is some new news for traders to go off of.

If you’d like to learn about the opportunities that exist in the grain markets right now, please request our exclusive Agricultural Investor Kit. 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 Grain Investor Kit Includes:

– In-Depth Fundamental Analysis and News on What is Currently Moving the Grain Markets
– Technical Analysis Overview with Possible Outcomes
– Analysis on Current Trends and Opportunities in the Market and How to Take Advantage of Them
 – Historical Charts and Data Outlining Historic Prices and Trends

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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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