Hugely Bearish USDA Report Wrecks Farmers Hope for Higher Prices

December corn futures finished yesterday’s session limit down
Bearish USDA report for all grain markets
Traders see support in Corn at 3.63 and 3.51
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: December corn futures finished yesterday’s session limit down after a hugely bearish USDA report. Expanded limits for today’s session are 40 cents. The USDA has harvested acres at 89.0 million with a yield of 169.5 bushels per acre, putting production at 13.901 billion bushels. 2019/2020 carryout came in at 2.181 billion bushels, well above expectations. Yesterday’s Crop Progress report showed conditions steady with last week, the consensus was for a drop of 1% in the good/excellent ratings.

Technicals: Yesterday’s session was a dagger to any optimism left on the chart. The next support pocket comes in from 376 ½-377 ½. This is the gap from May 14th. Below that is contract lows of 363 ¾, something we thought was far out of reach for this December contract, just 24 hours ago.

Bias: Neutral

Previous Session Bias: Neutral/Bullish

Resistance: 392 ¾***, 405-407**

Support: 376 ½-377 ½**, 363 ¾***

 

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Soybeans Futures (November)

Fundamentals: November soybean futures were softer yesterday after a bearish USDA report. The USDA has harvest acres at 75.9 million bushels and a yield of 48.5, putting production at 3.68 billion bushels. Carryout for 2019/2020 came in at 755 million bushels.

Technicals: Soybeans are trying to stabilize in the early morning trade but have so far failed against technical resistance. Right here, right now we are in the middle of no man's land; we are keeping our bias set at Neutral.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 889 ½-891 ¾**, 900-904 ¼***, 921-924***

Support: 854 ½-860 ½****, 839 ¾-843 ¾**

Wheat Futures (September)

Fundamentals: Wheat futures rolled out of bed on the back of a bearish USDA report and overall weakness in the grain sector. Increased ending stocks and a bigger crop remains a concern; we are keeping our bias at Neutral/Bearish.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 507 ¼-509 ½****, 525 ¾-531 ½****

Support: 444½-446**, 427 ¼****

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