Schwieterman: Corn facing another day of consolidation

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Corn                                   Estimated Fund Position
Trends – December Contract
Short Term: Down              Net Long Futures and Options: -206491
Long Term: Down               Change: +3000
Overnight Trade: Z +1 @7:30 AM


The corn market is beginning another day of consolidation. It is looking less likely that we will have a supply and demand report next Friday and traders don’t have much fresh information to work with. Yield reports are still good and there is fear that the October report, when it comes, will be bearish and that is capping rallies.

Wheat                                 Estimated Fund Position
Trends – December Contract
Short Term: Up                   Net Long Futures and Options: -57219
Long Term:Up                     Change: +2000
Overnight Trade: Chicago: Z -1 KC: Z -2 @7:30 AM


The December KW and the bull spreads are working on a correction, but the December KW did manage its 9th consecutive higher close yesterday. After yesterday’s big move higher and subsequent close at the bottom of the range, a correction is looking more likely all the time. The fundamental outlook is still quite good so I like buying breaks.

Soybeans                             Estimated Fund Position
Trends – November Contract
Short Term: Down                Net Long Futures and Options: 92218
Long Term: Down                 Change: +6000
Overnight Trade: X -5 @7:30 AM


The soybeans are running into trend line and 50-day moving average resistance so this upward correction may already be over with. We don’t have a lot of news to work with since we don’t have the export sales data and demand is the main bullish feature of the market. There is still talk of good yields which will cap rally attempts.



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