Friendly start to the Pro Farmer crop tour. The weekly crop progress report was released yesterday afternoon, showing the U.S. corn conditions at 56% Good/Excellent, down 1% from the previous week and 2% below expectations.
U.S benchmarks are holding ground at unchanged after an exuberant three-day run to a strong wave of resistance; this is just about all the bulls can ask for at the onset of U.S trading hours.
November soybean futures tried to gain ground early last week but failed to attract new buyers near the psychologically significant $9.00 handle. We saw several headlines that had a positive spin, all of which were sold into.
U.S benchmarks are off to a strong start this week. One is welcome to credit this action to hopes on U.S and China trade negotiations, however, the move began after pinging major three-star support on Thursday and the reversal is much broader.
U.S benchmarks are sharply higher this morning and make no mistake, strong economic data yesterday offset budding fatigue that could have easily taken the S&P through strong support.
December corn futures finished lower yesterday as longs continued to liquidate and shorts pounced. Crop tours will start hitting the roads in the coming weeks, this will likely have some influence on price action.
True volatility is increasing daily; after a sharper reversal yesterday of Tuesday’s reversal, the S&P finished down 3.1% and its Average Daily Range is above 50 for the first time since January.
December corn futures continued lower yesterday as the bull camp threw in the towel, some likely forced by margin/risk departments. Soybean futures caught a bid yesterday, thanks to new news that suggested a delay in additional tariffs
President Trump announced he will delay additional tariffs on China until December and the risk-appetite responded. U.S benchmarks rallied sharply with the S&P gaining 1.8%.
