10/24/18

Morning Bullet Points - 10/24/2018

HIGHLIGHTS

  • Markets trading lower overnight in a quiet trade with corn, beans, and wheat all three finishing off the overnight lows.
  • November option expiration on Friday may lead to corn/beans/wheat seeking out strike prices to settle at.
  • China announced they would ban the feeding of kitchen waste to hogs to try to limit spread of swine flu.
  • Cash markets seeing some moves yesterday with Decatur, IL corn basis moving 20 cents higher to option price.
  • US sales of beans to China remain sluggish with China booking anything and everything they can out of Brazil.
  • The Russian Ag Ministry is meeting with wheat exporters on Friday, which could lead to some fireworks on any sign that they could slow sales out of the country.
  • Corn technically is finding support in the 3.65-3.70 area with resistance above the market near 3.75.  Stochastics are correcting from oversold.
  • Beans are stuck in their range with moving average support at 8.55 and resistance in the mid-8.60’s.
  • Wheat technically is testing long-term support with more downside risk if Dec. wheat drops below 5.00

 

WEATHER

  • Brazil remains wet over the next couple weeks to allow their crops to get off to a good start.
  • US harvest likely to slow later this week with chances in the 6-10 period as well.

 

OUTLOOK

  • Corn has successfully held above support in the previous resistance area of 3.65-3.70.  With the tightening global corn supply situation, look for buyers to continue to show up there as the managed money crowd is moving into corn.
  • Beans don’t have anything supportive at the moment as the US can’t sell anything to China.  The market is stuck in its range with a move higher in corn needed or a trade deal with China for beans to have a chance at rallying.
  • Wheat is testing critical support with a drop below $5.00 something the bulls don’t want to see.

 

Fun Fact of the Day: The movie Die Hard tried to recruit several Hollywood A-listers like Sylvester Stallone, Burt Reynolds, Clint Eastwood, Harrison Ford, and Doc Johnson to play John McClane, but after a series of rejections they made the surprise choice to accept Bruce Willis, who at the time was far from their first choice.

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