RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Corn: The story this week (as usual for this time of year) will remain focused on two things, demand for corn (from China and ethanol both), and weather. More widespread rains covered the Midwest this last weekend, but still were missing key parts of Iowa and some of Illinois as well. The outlook moving forward shows these parts of Iowa and Illinois getting .75-1 inch of rain this week, which is weighing on the market this morning. Technically speaking, there is still the gap above at $3.43^6, which as I mentioned last week, I expect this to be filled before seeing much more downside. I think you can look to buy dips along the bottom trend, looking for this to cover the gap, using a stop 3-4 cents below the trend support. Once the gap is filled, I think being patient and waiting for the market to provide a more definitive entry point would be wise, this would also be a spot to look at booking profits or trailing a stop if you do buy along the bottom trend line.

Soybeans: As mentioned with corn, we will closely be watching demand out of China this week, as well as the favorable weather we have in the forecast. This morning, the demand story is outweighing the weather, because frankly, the weather outlook can change by the end of business today. Technically speaking, the market should be running out of steam soon, and look for resistance to at least temporarily hold on the top end of this channel. ($9.02-$9.03) This would be the first spot I think you can “take a shot” at being short the beans, but I strongly suggest using a stop somewhere around the 200-day MA at $9.10-$9.11.

Corn Dec ’20 Daily Chart
Soybeans Dec ’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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