Farm Progress

Is there more upside for the corn market?

Be ready to take advantage of better corn prices should they show up in the coming weeks.

Kevin Van Trump

January 27, 2018

1 Min Read

Corn bulls saw strong export sales Jan. 26 in the morning of 1,445,900 MT for 2017-18. This easily topped expectations and was up 59% from the prior four-week average weekly report, which was delayed because of the government shutdown.

The weather in Argentina still remains a wildcard with several sources thinking the USDA currently has their production estimate 2-4 MMTs too high. Bulls also think the Brazilian and South African production estimates might also need to eventually be adjusted lower.

Technically, there's some talk that the MAR18 contract could struggle closing above the 100-day Moving Average, which is right around $3.58, without some fresh new bullish headlines. Perhaps weather forecasts in South America over the weekend will trend more bullish.

Also keep in mind, the new-crop DEC18 contract is trading at or around $3.89 this morning and hasn't closed back above $3.90 since early November. The contract high was posted in early July at just under $4.30 per bushel. If you are a producer who didn't take advantage of these levels and reduce a portion of your longer-term risk you might soon get a reprieve. Make certain you are paying extremely close attention and put yourself in a position to "execute." 

As a spec, I continue to stay conservatively bullish, believing there's more upside potential in the days and weeks ahead. I'm looking for Argentine weather headlines to get a bit worse before they get better. 

Get more market news from The Van Trump Report.

About the Author(s)

Kevin Van Trump


Kevin is a leading expert in Agricultural marketing and analysis, he also produces an award-winning and world-recognized daily industry Ag wire called "The Van Trump Report." With over 20 years of experience trading professionally at the CME, CBOT and KCBOT, Kevin is able to 'connect-the-dots' and simplify the complex moving parts associated with today's markets in a thought provoking yet easy to read format. With thousands of daily readers in over 40 countries, Kevin has become a sought after source for market direction, timing and macro views associated with the agricultural world. Kevin is a top featured guest on many farm radio programs and business news channels here in the United States. He also speaks internationally to hedge fund managers and industry leading agricultural executives about current market conditions and 'black swan' forecasting. Kevin is currently the acting Chairman of Farm Direction, an international organization assembled to bring the finest and most current agricultural thoughts and strategies directly to the world's top producers. The markets have dramatically changed and Kevin is trying to redefine how those in the agricultural world can better manage their risk and better understand the adversity that lies ahead. 

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