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.