CAN DEMAND & WEATHER LEAD TO A BOUNCE?

Written By Sebastian Frost

AUDIO COMMENTARY

*No Market Updates Till Friday

  • Grains strong following weakness yesterday

  • Funds continue to whip saw the markets

  • NOPA numbers indicate strong demand

  • More war headlines. Market doesn’t care

  • Is China sniffing for US corn

  • Corn trades at lowest levels since 2020

  • Demand is the biggest thing right now. If we find demand we will have reasons to go higher

  • We haven’t seen this type of weather before in August. How much damage will these 110 temps do after the rain we had?

  • Why the strength in the dollar might help US exports

  • Wheat has a ton of upside, but it could take some time

  • Apologies for choppy audio as we are at Dakota fest

Listen to today’s audio below

THE CHARTS

Corn 🌽

Bulls want a close back over $4.81 to prevent more downside. If we don’t get a good bounce, we could definitely trickle a little lower before finding some firm footing.

If we do continue lower, the $4.60 level is the level to watch.

Beans 🌱

Currently, beans have nearly taken out yesterday’s losses with the massive improvement to crop conditions. First upside target is $13.37 and last Friday’s highs. A close above could bring more upside. Next upside target would be $13.63. Bulls would like to hold the $13 to $12.97 level.

Chicago 🌾

We are back below $6. Wouldn’t be too surprised to see us test our May 31st lows of $5.87 1/2 before finding a bottom. Bulls need to get back over $6.06.

WEATHER

Some pretty scorching temps of 110 to 115 degrees.

Sebastian Frost
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GRAINS LOWER WITH IMPROVEMENT TO CROPS