Outside market pressure, combined with another slow day of news in grains continued the selloff in corn as traders started positioning themselves ahead of the today’s WASDE report. The managed money crowd sold off an estimated 8K contracts, if we break through the $3.70 support VOL will drop and we could see a quick sell off to $3.65. Crude oil crashed hard yesterday off $2.86 or 5.38% as fund money pulled the plug and we broke the $50 support level, the weakness has flowed into today which will keep a heavy hand on the grains. The WASDE is out at 11am and as mentioned earlier this week looking for a slight decrease in US C/O and a 1MMT increase in Brazil production. Once the trade digests the report full attention will be again turned to S. America weather and Stocks/Planting reports on the 31st. Looking ahead to today, expecting a tight session ahead of the report with downside pressure. But when we expect neutral WASDE reports we usually end up getting fireworks so better to be prepared than on the wrong side of the fence. CK has support at $3.70 then $3.66 with resistance at $3.75 then $3.77.
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.