Corn and soybeans were able to post strong gains to start the week. However, there has been a lack of follow through overnight.
Watch us on RFD-TV today at 11am CT for another update from day 2 of the Pro Farmer Crop Tour!
Corn
Technicals (December)
Yesterday’s higher corn close marked the fourth straight Monday of gains. In the prior 4-weeks, those gains were given back and then some by Wednesday. Will this week be different? To be determined, but the technical landscape does look moderately friendlier as prices are knocking on the door of trendline resistance and the 20-day moving average, those hurdles come in from 403-404 3/4, which is our pivot pocket for today’s trade. There’s some resistance near 409, but above that there could be more room to run. On the flipside, a continued failure keeps the door open for a retest of support from 387-390 1/4.
Short Term Bias and Technical Levels of Importance
- Bias: Neutral/Bullish
- Resistance: 406 1/4-409***, 421 3/4-423 3/4****
- Pivot: 403 3/4-404 3/4
- Support: 387-390 1/4**, 380*
Below: Daily Chart of December Corn Futures, depicting trendline resistance from the June highs as well as trendline support, both of which are converging to create a falling wedge. The chart also includes the 20-day moving average (in purple).
Notes
- Export inspections for corn were strong, totaling 1,166.1k tons – up 18.2% from last week.
- Monday’s crop progress report was as-expected with corn coming in at 67% Good-to-Excellent.
- Pro Farmer released their yield calculations for Ohio and South Dakota yesterday, based on the samples from crop scouts. They have Ohio at 183.29, that’s down just .35% from last year. The recent USDA report suggested a drop of 5%. We noted in our updates yesterday that what we saw on our route was more inline with last year too. Thier South Dakota yield comes in at 156.51, down .58% from last year.
Map of Interest
Below is a look at the weekly Crop Progress breakdown.
Soybeans
Technicals (November)
November soybean futures had a nice rally to start the week but have so far failed to find any follow-through to the upside. The market is oversold and remains in a steep downtrend. The market could see relief to 1013-1015 and still be in that downtrend. Above that and the tides could turn a bit more neutral to bullish. There are a few hurdles between here and there too. The first order of business for the Bulls is to achieve a close back above 975 1/2-980. Above that is 995-1000. On the flipside, first support remains intact from 950-955 1/4.
Short Term Bias and Technical Levels of Importance
- Bias: Neutral/Bearish
- Resistance: 995-1000***,1013-1015***
- Pivot: 975 1/2-980
- Support: 950-955 1/4**
Below: Daily Chart of November Soybean Futures, depicting trendline resistance from the May highs as well as the 20-day moving average (in purple).
Notes
- China made a flash sale on Monday for new crop soybeans totaling 332k MT, while another 100k tons were sold to unknown destinations. This comes on the heels of China making its largest purchase of new crop soybeans in a flash sale last week.
- Soybean export inspections totaled 398.2k tons – up 13.9% from last week.
- Soybeans were rated 68% Good-to-Excellent in yesterday’s weekly Crop Progress report.
- Pro Farmer Crop Tour released their soybean data for Ohio and South Dakota yesterday. It’s still too early in the year to nail down a solid yield estimate so pod counts are the main take away. In Ohio they showed that down 1.84% from last year. For South Dakota, that was up 1.27%.
Map of Interest
Below is a look at the weekly Crop Progress breakdown.
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