One March 29th the USDA shocked the corn market as Quarterly Stocks came in 270mm bushels higher than expected. New crop corn acre expectations are set at 92.8mm! Old crop closed 17 cents lower on the day and new crop was down 12. While the markets have recovered some, the damage is done and it has caused us to do a rethink on potential price ranges this year. Listen to Turner’s Take Podcast to find out more!
Corn chart damage was obviously done on Friday, following USDA’s Prospective Plantings and Quarterly Stocks reports delivered bearish surprises. After that drubbing, however, corn has held in relatively well so far this week.
In last night’s edition of Swing Trader’s Insight, gold futures were labeled as a Taylor Trading Technique (TTT) Sell day for today. This morning I updated that call, and I suggested we could look to short on a failed rally above the $1300 pivot point. For a TTT Sell day, we would normally look for… Read more.
US Dollar strength relative to South American currencies is likely hampering old crop exports in the near term, but managed money funds remain at record short positions combined in corn, soybeans, wheat.
The “SELL” button was getting hit at the 50 day moving average these past three days in corn, throwing some cold water on the short covering party.
As we’ve previously discussed, large speculators have recently built historically large short positions, setting the stage for potentially significant short covering rallies on new risks to production or shocks to demand.
In our new podcast we go over the recent FOMC decision to put a hold on interest rate hikes and unwinding the Fed’s balance sheet. We go over how ASF in China has lead to the Chinese buying pork from the US. We also go over the flooding in the the western Midwest and northern Plains and what it means for corn, soybeans and wheat. Make sure you take a listen to this week’s Turner’s Take Podcast!
Moving averages are one of the most basic yet most meaningful indicators out there for potential price support or resistance, in my opinion. Another basic tool is trend lines. When they match up together, I’m taking notice.
Drew Rathgeber’s latest market update for 3.19.19 for all of your favorite markets including DowJones, Emini S&P, Gold, Silver, Euro, Lean Hogs, Corn and many more! Watch as Drew gives a simple market commentary purposely using his simple strategy “Rath Overlay” which is nothing more than basic guidance cutting out all market noise!
Now that the index funds appear to be willing to cover at least some of their extreme short positions in grains, what are some potential technical price targets to consider for the next round of sales or hedges?