RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Agricultural

Phase 1 Signing likely Catalyst for Corn Rally

Posted 01/14/2020 11:11AM CT | Eric Scoles

Mar ’20 corn futures look to start another day positive showing impressive bullish activity after Fridays somewhat bearish USDA report. From a technical perspective it’s a very bullish indicator when prices hammer down deep taking out several lows and bouncing up to close positive. Corn demonstrated a clear rejection of lower prices and has followed through with more daily gains. The Phase 1 trade agreement between U.S./China is set for tomorrow and could have big implications for corn. It’s possible we may still see corn numbers reduced from such a late planting and all the weather issues this season. However, the biggest factor driving this market higher right now is demand. If the US/China trade deal moves forward there is huge potential for increased demand for corn; whether it’s for human consumption, livestock feed, or production in ethanol. Prices at the time of writing are at a resistance point in the current consolidation range, but the trade agreement is a likely catalyst for a break-out and rally.

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Eric Scoles

Market Strategist
Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.
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