Profit Taking in Grain Markets

Corn (July)

Fundamentals: Yesterday’s WASDE report was not enough to feed the Bull and has prompted not only long liquidation, but likely new shorts (back)into the market. 2020/2021 ending stocks came in at 1.257 billion bushels, near the middle of estimates. World ending stocks came in at 283.5 little changed from the previous report and above the average estimate. New crop carryout estimates for US and World were on the high end of estimates which put a lot of pressure on December futures. Traders are also expecting to see next month’s report show a jump in US acres. Not to mention that weather has been reasonable, outside of some isolated areas.

Technicals: July futures are nearly 35 cents off the contract highs, which looks like a blip on the chart. This should act as a caution flag for the bull camp, we can trade another 25+ cents lower and still hold trendline support, so managing your position and expectations are important. Our pivot pocket has been tested overnight and has so far held, that comes in from 698-701 ½. A break and close below here opens the door for a leg lower, with the next support pocket coming in near ..........Click this link to read the FULL report and receive our daily commentary