Dec corn up 3 at $3.7325
Nov beans up 2 ¼ at $8.8025
The DOW is up
USD is weaker
Crude oil down $.27 at $54.96
Corn bulls continue to lick their wounds following a massively depressive USDA report on Monday. Corn prices have tumbled -40 cents in the blink of an eye. Bears are arguing that U.S. weather has also improved to some degree with more widespread rainfall forecast across many portions of the western corn belt. Bulls are pointing to ongoing concerns about dry weather in the eastern corn belt. There’s also conflicting debates and discussions floating around inside the trade regarding the recent fallout in the Argentine peso. The short term trend for December corn is bearish but the market is oversold. However, the market is poised for a test of contract lows (363.75). Sustained action below 388 maintains strong bear forces. A close over 403.5 is the minimum needed to provide fresh upside targets.
Soybean prices have essentially traded between $8.50 and $9.50 per bushel since early-March. The recent round of Chinese trade uncertainty has ratcheted that range down to between $8.50 and $9.00 per bushel, basically shaving off the upper-end. There’s some hope that President Trump’s recent gesture of good-faith and choice not to move forward with the next round of tariffs, will be reciprocated by the Chinese and perhaps lead to the purchase of U.S. soybeans. The trade count had the fund selling 7,000 beans yesterday. Funds are now thought to be short 80,300 lots. The short term trend for November beans is neutral positive. The market is poised to trade 902-905. Stable action over 905 confirms a bottom. Closing under 870.5 warns of a correction.
Illinois Republican Congressman Rodney Davis, speaking with Brownfield Ag News, says convincing Speaker Nancy Pelosi to bring the USMCA up for a vote is the most important issue to be addressed in Washington DC. Illinois Republican Congressman Rodney Davis says convincing Speaker Nancy Pelosi to bring the USMCA up for a vote is the most important issue to be addressed in Washington DC. Illinois Democratic Congresswoman Cheri Bustos tells Brownfield that Trade Representative Robert Lighthizer and Speaker Pelosi have been good actors throughout the process. “I think whether you are a democrat or a republican, we want to pass this, but we’ve got to make sure that not only does it look after and do right by the family farmer, but it also has to do right by the American worker. If we can do those two things then I think we will end up in a good place.” Commodity and livestock group representatives also expressed the importance of the USMCA for their respective industries to Brownfield at the Illinois State Fair. (Source: Brownfield Ag News)