9/20/2023
Sep 20, 2023
Corn and soybeans reverse fortune to come back. After trading a fresh low, corn flipped the script to close 4-6 higher on the day after running into the 20-day moving average. The 20-day MA has been a spot of resistance on the December chart going back about 4 weeks. Price action in soybeans was similar, coming back firmly off of yesterday's lows and ending Wednesday with gains of 4-8 cents. The only difference is soybeans continue to coil/consolidate on the charts between the late-June lows and July highs while corn bounces off of 2 1/2-year lows. Weekly ethanol data showed a drop in production of 59,000 barrels/day to 980k bpd. Stocks rose 510,000 bpd to 21.7 mln bbls. The USDA confirmed the sale of 120,000 tonnes of soybeans for delivery to unknown during the 2023/24 marketing year.
December weekly continuous: There is potential for some fireworks in the corn market as trade tries to guess/define potential harvest lows. We have formed a “falling wedge” like pattern over the growing season, close this week outside of the magic lines to the high side could fuel a bullish breakout. If this happens, locking in basis for fall deliveries is key to maximizing values! Something to pay attention to going into the back half of this week.
December weekly continuous: There is potential for some fireworks in the corn market as trade tries to guess/define potential harvest lows. We have formed a “falling wedge” like pattern over the growing season, close this week outside of the magic lines to the high side could fuel a bullish breakout. If this happens, locking in basis for fall deliveries is key to maximizing values! Something to pay attention to going into the back half of this week.