U.S benchmarks slipped sharply south yesterday, and price action is now at one-month lows. Our narrative played out perfectly; this market must see better data in order to perform strongly.
December corn futures took off yesterday following a bullish USDA report. The USDA showed quarterly stocks at 2.114 billion bushels, right on the bottom end of estimates.
December corn futures have been trading sideways for the better part of the last two weeks as market participants continue to wait for new news and clarity.
U.S benchmarks are working higher from Friday’s trade scare. It was reported the White House is considering both delisting Chinese companies from U.S stock exchanges and imposing restrictions on U.S investments in China.
Corn Export Sales came in at a disappointing 494,000 metric tons. That coupled with some position squaring ahead of Monday’s quarterly stocks report and the end of the month brought prices back near technical support.
U.S benchmarks have been working higher since the opening bell swoon yesterday and since price action Wednesday morning held the overnight low; the range has been about 1% and gyrating higher with 3000 broadly acting as a psychological ceiling.
Soybean Export Sales came in at 1,038,000 metric tons, another strong number. This is the second week of strong numbers in Soybeans, but three makes a trend.
Fundamentals: U.S benchmarks snapped back yesterday, even as the impeachment “inquiry” on President Trump heats up. This would confirm the market is more dependent on the near-term on the U.S and China trade narrative.
Corn futures gained some strength yesterday, in part to a sale of 200,000 metric tons to Mexico. Money flow and technicals remain friendly, outside of that there is little new news to report.
