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Cash and futures markets may get animated in the days to come.

Naomi Blohm, senior market adviser

December 30, 2021

3 Min Read
Stack of one hundred dollar bills.

Heading into the final days of 2021, corn and soybean futures contracts have been trading with dramatic trading ranges. For the past two weeks, corn and soybean futures prices were able to push higher thanks to dryer weather conditions in South America.

Corn and soybean futures were able to rally up to major overhead technical resistance levels on daily charts due to lighter volume with holiday trade and fund buying. However, without any fresh news to take prices above these important resistance levels ($14.00 for March soybeans and $6.17 for March corn futures) a price correction lower may occur.

Keep focusing on cash sales

Did you take advantage of strong cash basis levels recently and lock in a basis contract with your local grain elevator? If so, this was likely implemented using the March 2022 futures. If so, remember that it is your job to finish pricing that contract when you feel the March futures contract has achieved its price target higher.

With March corn and soybean futures recently trading near major technical resistance levels, it may be tricky for prices to move any higher without fresh news. What fresh news would be needed to push prices any higher? It would likely take a combination of three factors: a friendly Jan. 12 USDA report would be needed, a lower U.S. Dollar, and continued hot and dry weather for South America.

Related:Stay vigilant with grain marketing over the holidays

Stay on your toes and stay aware of market prices and opportunities in the days to come.

Reach Naomi Blohm: 800-334-9779, Twitter: @naomiblohm, and [email protected]

Disclaimer: The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Individuals acting on this information are responsible for their own actions. Commodity trading may not be suitable for all recipients of this report. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. No representation is being made that scenario planning, strategy or discipline will guarantee success or profits. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing. Total Farm Marketing and TFM refer to Stewart-Peterson Group Inc., Stewart-Peterson Inc., and SP Risk Services LLC. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services, LLC is an insurance agency and an equal opportunity provider. Stewart-Peterson Inc. is a publishing company. A customer may have relationships with all three companies. SP Risk Services LLC and Stewart-Peterson Inc. are wholly owned by Stewart-Peterson Group Inc. unless otherwise noted, services referenced are services of Stewart-Peterson Group Inc. Presented for solicitation.

Related:The 9 grain market indicators to watch, now through the New Year

The opinions of the author are not necessarily those of Farm Futures or Farm Progress.                                                                 

About the Author(s)

Naomi Blohm

senior market adviser, Total Farm Marketing by Stewart Peterson

Naomi specializes at helping farmers understand how to manage cash marketing needs and understand the importance of managing basis, delivery point considerations, cash flow needs and storage capacity. She earned her Bachelor of Arts in Political Science with a minor in Agriculture Business at the University of Wisconsin in Platteville. She has a Master of Science in Adult Education with an emphasis in Ag Economics from the UW-Platteville and a Master Certificate in Global Education, from the UW-Oshkosh.

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