10/27/2021

Oct 27, 2021


10/27/2021
Softer overnight and a sharp move higher after the 8:30 market open.  Corn and soybeans climbed for the first 90 minutes of the day session before fading off their highs.  Corn settled in comfortably for the remainder of the day trading 6-11 cents below their highs and soybeans narrowly avoided a bearish reversal on the chart, eking out a finish of 1-2 higher but 15-18 cents off the day's highs.  The biggest question of the day is "why?"  Honestly, it doesn't feel like the market picture has changed much this week, if at all.  Money wanted to buy, so they bought, citing "strong corn demand."  The price action in soybeans today is exactly why we always encourage implementing sell orders as a way to let the market work for you.  Weekly ethanol production set a new weekly all-time high with 1.106 million barrels per day, production was offset with a decline in ethanol stocks of 155,000 barrels to 19.93 million barrels.  This does suggest demand is keeping pace with record production.  After a big reversal off of fresh contract highs yesterday, spring wheat finished in the middle of a 20-cent range today.

Below:
The first line of resistance on the corn charts is now the trend line of lower highs, and it is a line of majorly stiff resistance.  The pattern is similar for all the 2021 crop contract months.  Nudging up against this trend line like we did today is a great selling opportunity.corn-chart.jpg

Read More News

Aug 30, 2024
Corn picks up 10 cents and soybeans improve just over 25 cents on the week to go into the holiday weekend on a positive note.  Soybean export sales have picked up the pace in a big way.  At the end of last week, sales...
Aug 23, 2024
Corn trade was flat at 2 lower throughout a majority of the day to take us back to where we started the week.  Soybeans were 9-11 higher in what looks to be a dead-cat bounce in the middle of nowhere on the charts....
Aug 12, 2024
The USDA's August WASDE report gave the market more than just a snack to chew on. We are finally seeing some official numbers get hashed up after a planting season that had many wondering about acres. The report...