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Walsh Trading's Weekly Grain Report

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The corn market came under pressure following Wednesday’s bearish crop report from the U.S.D.A. and traded down to the lowest level since October 13th this week. The USDA raised corn yield to a record 175.3 bushels per acre and increased overall U.S. production 15.226 billion bushels, while pushing ending stocks up to 2.403 billion bushels. The yield number and production bested the high end of expectations, and leaves corn with wiggle room near term for any increase in global demand, along with any tepid weather hiccups during South American growing season. Corn ended the week with a close at 3.40 December futures sitting at key trend line support while settling below key moving averages at the 50 day (342) and the 100 day at (346.2). Trend and Index following funds entered into this election week short just 65K contracts in corn. Prior to harvest these funds were short over 200K contracts. With record yield just announced and a stocks/usage ratio at 16.4 percent, it appears that without help from a surging soy complex or weather issues in South America, those trend and index following funds will pile back on the short side of the market near term.

Without the aforementioned bullish fundamentals entering into the market, the near term highs for old crop corn contracts (Dec16, 359.4) and (March 17, 369.0) are likely in for some time. Producers and Speculators alike can consider the following trade into year end. Look to buy 1 March 2017 340 put while selling 2 March 390 calls for 3 cents or $150.00 plus all commissions and fees.

Technical’s read like this for this week. For January soybeans support is down at 9.67 and with a close under 9.50 is next. Resistance is up at 10.11 and then 10.38. For December corn support comes in first at 3.34 and then 3.28 Resistance comes in at 3.51 and then 3.62. For December wheat support comes in at 3.96 and then 3.91. Resistance is up at 4.15 and then 4.27.

For those interested I hold a weekly grain webinar each Thursday at 3pm. It is free for anyone who wants to sign up and link for sign up is below. If you cannot attend live a recording will be sent to your email upon signup.

Sign Up Now

For more info on Walsh Trading’s Absolute Ag Performance CTA please click on the link below:

Sean Lusk

Director Commercial Hedging Division

Walsh Trading

312 957 8103

888 391 7894 toll free

312 256 0109 fax

Walsh Trading

53 W Jackson Suite 750

Chicago, Il 60604

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About the author

Sean Lusk is a registered commodity broker and Director of the Commercial Hedging Division of Walsh Trading in Chicago. Sean began in the business as a runner on the trading floor during summer breaks from college in 1993. Upon his graduation from Southern Illinois University at Carbondale in 1996, Sean began his career on the trading floor of the Chicago Mercantile Exchange (CME). Overseeing billions of dollars of transactions working as a clerk in the Eurodollar pit, Sean took the next step and became a floor broker and member of the CME in 2003. He handled customer orders for banks and investment houses from all over the world from inside the Libor pit at the CME.

Now, at Walsh Trading, Sean utilizes his experience in the marketplace and his professional client service skills to aid and assist customers in their trading endeavors.  

He writes daily and weekly commentaries focusing on both the Precious Metals and Agricultural Markets along with related market activity.

Sean has been quoted in various media outlets discussing futures markets. 

These include:


  • Futures Magazine
  • Reuters
  • Forbes
  • Kitco
  • Nikkei Press


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