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Agricultural

Surge in corn plantings now makes rain forecast lean bearish | RJO Futures

Posted 05/16/2017 9:55AM CT | Tony Cholly

The short term trend remains down, as planting progress was better than expected late last week and over the weekend. Warm and dry weather helped producers catch up on planting progress. The weekly progress report showed that 71% of the crop is planted compared to 47% last week and 73% last year. Traders expected 68% complete. The 10 year average for this time of the year is 69%. The Western corn belt saw significant progress over the seven days with Iowa 85% vs. 52% last week, Minnesota 84% vs 35%, Nebraska 78% vs 48%, SD 77% vs 32%, ND 58% vs 23%, and Wisconsin 48% vs 15%. Illinois saw little progress. Indiana, Michigan, and Ohio are still behind their 5 year averages. With technological advances, the producer has shown they only need a small window to make major advances. Farmers will welcome the warmer temperatures in the short-term, while traders should still be aware of longer-term issues. Any weather scares moving forward can still force a short term rally from all of the fund managers that still hold a very large net short position. December corn support is at 380.  

 

Dec ’17 Corn Daily Chart

Corn 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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