Corn Report, 10/25/2016

Monday, October 24, 2016


After a up and down week bouncing between $3.50 and $3.60 like a pong board we had a rather subdued end of the week with Friday having a 4 cent range and CZ closed the week at $3.5250 with the fund buying any estimated 5K contracts. The CFTC report showed that the funds position as of Tuesday was actually 50K contracts short, which means since Oct 11th the funds have short covered 70K contracts. Why I am focusing on this is because the recent rally we have seen is almost solely based of fund movement, there hasn’t been a fundamental change, some believe the 16/17 carryout can still grow over 2.3 bln bu. Basis remains steady to weaker as harvest should have made good progress through the end of last week, rains are projected to hit the midwest by mid-week, should see nation harvest close to 60-65% complete. Beans have made a strong overnight bounce, if this continues it will drag corn along with it, but again looking for range bound trade, with heavier trading on the lower side. CZ has support at $3.49 then $3.41 with resistance at $3.57 then $3.60.


Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial