CBOT weekly outlook: Soy, corn turn bearish

Traders keep an eye on South America

Reading Time: < 1 minute

Published: January 21, 2021

,

Detail from the front of the CBOT building in Chicago. (Vito Palmisano/iStock/Getty Images)

MarketsFarm — Soybean and corn futures backed away from multi-year highs during the week ended Wednesday, as investors took profits and weather conditions showed some improvement in South America.

“The technicals are a little bearish for both corn and beans,” said Terry Reilly of Futures International in Chicago.

The managed money long position in soybeans, he noted, was already moving lower the previous week, when prices were still moving higher — a sign of softening interest from speculators.

Dryness concerns in South America have also eased over the past few days and some offshore demand is starting to shift to the continent.

“If we continue to see rains minimize crop losses in South America, we’ll probably see a pullback in beans back to $13.30 in the March (contract),” Reilly said (all figures US$).

For corn, he said, a test of support at $5 was possible.

On the other side, Reilly noted, any declines may trigger some fresh export demand, which would be supportive and slow the losses.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

explore

Stories from our other publications