Grain Express

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Corn (December)

Fundamentals: Corn futures are launching higher this morning as short covering continues. Market participants were expecting to see more material moisture over the weekend for parts of the Midwest that need it. Analysts are expecting to see Good/Excellent ratings drop another 2-3% in this afternoon’s crop progress report. Friday’s Commitment of Traders report showed funds bought back 49,000 contracts, trimming their net short position to 61,489. Fund buying at the end of late August as far from normal but fits right into the 2020 bingo card.

Technicals: The markets are working higher in the overnight and early morning trade as the momentum continues to feed on itself. If the Bulls can finish positive today, it would market the eighth consecutive session with a higher close. That momentum has brought the RSI (relative strength index) up near 75, easily the most overbought level for this contract. Our technical resistance pocket is being threatened this morning, we have had that defined as 359 ½-363 ¼. This pocket represents the 200-day moving average, a key retracement, and the top end of the range from July.