Technicals

Yesterday’s USDA report had corn prospective acres at an astonishing 96.99 million acres, well above the average estimate of 94 million. Corn quarterly stocks came in at 7.953 billion bushels, towards the low end of estimates.
Attention is all on this morning’s USDA report, out at 11 am CT. Corn prospective acres are expected to come in near 94 million. Quarterly stocks are expected to come in near 8.134 billion bushels.
Each day Ira Epstein gets you up to speed on what happened in the stock index and financial futures markets. He focuses on relevant economic and geopolitical topics that affect the S&P 500 futures, Nasdaq 100 futures, Dow futures, and VIX futures.
May corn continue to grind higher yesterday, despite news that two more ethanol plants will be closing, due to negative margins. Export sales this morning came in at a whopping 1,814,300 for old crop corn.
Cocoa futures have been weakened by demand and the global equity markets. As the US and European markets moved higher for back to back sessions for the first time since February, cocoa tried to bounce off a potential bottom in the May contract.
May soybeans extended their rally yesterday on the back of hopes for better demand and potential port disruptions in South America. The market is giving back some of those gains in the early morning trade.
U.S benchmarks finished Friday on a very ugly note, settling below the December 2018 low, and kicked off this week by gapping lower. The S&P traded to the lowest level since the week after President Trump’s 2016 election. Hopes of massive fiscal stimulus are stalling in the Senate.
Corn futures staged nice recovery early yesterday but failed to hold all the gains into the close. This morning, prices are working back towards the top end of yesterday’s range.
S&P responded to the first test of the December 2018 low by gaining as much as 13%. Yesterday, the S&P took out that low, but did not close below it. It has become evident since Monday that the panic is still playing out and we voiced here yesterday that we expected the market to break below 2300.
Each day Ira Epstein gets you up to speed on what happened in the stock index and financial futures markets. He focuses on relevant economic and geopolitical topics that affect the S&P 500 futures, Nasdaq 100 futures, Dow futures, and VIX futures.