Price action: December corn futures fell 3 cents to $4.10 3/4, near the daily low, at a contract low close, and for the week down 8 1/4 cents.
5-day outlook: Today’s lower trading action in corn futures, with a technically bearish close at the weekly low price, sets the market up for follow-through selling from the speculators early next week, including a challenge of important technical support at the contract low of $4.07 1/2 in December corn. If that level is breached, the speculative bears will likely be piling on the sell side in an attempt to push December corn below major psychological support at the $4.00 level.
30-day outlook: The risk aversion in the general marketplace today, due to the new U.S. trade tariffs kicking in, limited buying interest in the grain futures markets and will likely continue to do so if risk appetite remains squelched. New U.S. trade deals, or an escalation in U.S. trade tariffs and threats of such, will be a critical element for grain traders to examine in the coming weeks.
90-day outlook: World Weather Inc. late this week said the month of August likely will not produce crop-threatening conditions and that soil moisture levels should remain adequate until at least late in the month. We know weather conditions in the Corn Belt can change quickly in late summer, but the corn crop will be looking like a bin-buster down the stretch.
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