Corn: Corn, on the contrary to soybeans, is actually riding along the bottom end of the trend line with a gap above between $3.42-$3.43^6. Although the story is similar with strong demand and good weather, corn has the wildcard of a large “net short” position held by funds. If/when we get a bullish catalyst, the short covering rally can push this as far as $3.50+ in my opinion. Keep an eye on the weather forecast and sales to China this week to lead the market.  Crop progress today should give some directions as well. The MACD study below is still in a sell, but starting to curl back up towards neutral, and a cross of the two line would indicate a new buy.

Soybeans: Soybeans are beginning the morning by testing the upper range of the trend yet again. Will this be the time it finally breaks out? Depending on weather and demand this week, this may very well be the time to do it. The problem for that thought is, weather is remaining bearish in the face of good demand. I expect this resistance to hold until there is more bullishness added from weather, or an obscene amount of demand out of China happens. Steady demand is good, but it may take more to get that breakout over $9.20 this week in the Nov. beans. Lastly, RSI is around 67 on a short-term view, so this may be another factor that limits rallies because of overbought conditions.

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

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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