Corn Sharply Lower Off Crop Report

Published: 2018-09-14

Core Tip: Corn futures in the December contract is sharply lower reacting negative to the crop report stating that U.S and worldwide supplies were much higher than expected coupled with the fact that the bushels per acre hit 181.3.

Corn futures in the December contract is sharply lower reacting negative to the crop report stating that U.S and worldwide supplies were much higher than expected coupled with the fact that the bushels per acre hit 181.3 as production numbers are now at 14.830 billion bushels sending prices to a 2 month low.

Corn prices are lower by $0.13 at 3.53 a bushel as I’ve been recommending a bearish position from around the 3.66 level & if you took the trade place the stop loss above the 10 day high which now stands at 3.70 as I still believe we will break the July 12th contract low at 3.50 possibly in today’s trade.

The problem with corn and soybeans is that we have too much supply as we continually plant more year in and year out as I see corn prices now possibly going to the 3.00 level later this year as harvest will begin later next week putting more pressure on prices in my opinion.

Corn is trading far below its 20 and 100 day moving average as the trend is to the downside as I am also recommending a bearish soybean oil trade as I see no reason to own the grain market at this time as seasonally speaking harvest puts pressure on prices especially when a massive crop comes about.

I will be looking at adding more contracts to the downside if the contract low of 3.50 is broken as the risk/reward is in your favor, however the chart structure will not improve for another 9 trading sessions so you will have to accept the monetary risk at this time.

TREND: LOWER

CHART STRUCTURE: SOLID

VOLATILITY: LOW

Source:www.barchart.com

keywords: crop corn

Next article:Malaysian Aug Crude Palm Oil Inventories Rise 7.9% Due to 1.6 million mt on Higher Production, Lower
Pre. article:Strategie Grains Cuts EU Maize Outlook After Hot Summer

[ News search ] [ ] [ Notify friends ] [ Print ] [ Close ]

• Crop loss reported on 778 hectares in Kerala	• Large US apple crop expected this fall
• Washington apple crop availability greater t	• Almonds a potential new crop for Hawke’s Ba
• Frost damaged the citrus crop in Astara	• Alberta potato crop is best in the country
• Popularity of Polish Gala apples is boosted	• European fruit growers increasingly using mo
• North Carolina persimmon crop sees strong de	• 2022-2023 crop estimate for U.S. pears at 16

Plant milk has low n	Pork market will rem
Day lily planting ar	Price of golden Fuji