---

Grain markets have been choppy through much of today's trade with little new news to offer conviction to the Bulls or the Bears ahead of a long weekend.

Grain Market Recap: 

It was a mixed bag to close the month of August. Corn bulls are surely eager to turn the calendar over to September, after closing the month 34-6 cents lower - ultimately settling at 478-2. Meanwhile, soybeans were 37 cents higher on the month settling at 1368-6. The bean:corn ratio will be worth monitoring over the next month, as its currently sitting at 2.86 - the highest it's been in approximately 7 years, and eerily similar to 2013. 

Corn:

The word of the day is Microcosm. Miriam-Webster defines microcosm as, “A community or other unity that is an epitome of a larger unity”. That is a very apt summation of today’s price action in the December corn contract. After selling off sharply at the open, the low for the day was cemented just an hour into the trading session at 476-6. Shortly after, we rallied all the way back into positive territory, trading 10 cents higher to 486-6 around 10:05 AM CST. December corn ultimately settled 2-4 cents lower at 478-2, gradually moving lower through the duration of the session. Seasonally, the month of September is more friendly to December corn than August is. We’ve seen progressive consolidation in trading ranges throughout the month of August by continually testing 500. It’s not unreasonable to expect the contract to rally back within historically average ranges for the soybean:price ratio if flash sales for both corn and soybeans permeate early in the month. 

Soybeans: 

While November soybeans ended the month markedly better off than December corn, daily price action on the November soybean contract was arguably more disappointing. After moving sideways through the duration of the overnight session, the contract sold off 5-6 cents just 5 minutes after today’s open. Bulls did their best to defend the 1377-1380 range for the next few hours, but the contract effectively limped into the close. For the day, November soybeans settled 18 cents lower at 1368-6, with the low price for the session coming in just ¼ cent lower than the final settlement. Settling below our 4-star support pocket between 1373 and 1381 is far from ideal, but it could be chalked up to end-of-month position flattening. At the end of the day, we have 3 million fewer acres planted than expected this spring, and soybean demand has markedly improved over the past 4-5 weeks.

 

---

Sign up for a 14-day, no-obligation free trial of our proprietary research with actionable ideas!
Free Trial Start Trading with Blue Line Futures Subscribe to our YouTube Channel
Email info@Bluelinefutures.com or call 312-278-0500 with any questions -- our trade desk is here to help with anything on the board!

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

Livestock Grains

Like this post? Share it below:

Back to Insights