Be Cautious When Bearish USDA Report Moves Market Higher

A pullback may not last long, analyst says.

The USDA report last week favored the market bears. However, prices reacted positively.

My experience tells me to be cautious when the market moves higher after a bearish report. I want to see higher highs and higher lows on the charts to confirm the momentum is really going to keep heading higher.

That did not happen on Monday.

Here’s this week’s Successful Marketing Newsletter.

The charts now show signs that the bullish pop late last week and early on Sunday evening may have been a trap. For instance, the bears now have the upper hand on any new buyers since the false push higher last week. This pull back could be short-lived.

Here’s this week’s Successful Marketing Newsletter.

The intense heat that is hitting, or is going to hit, large parts of the Corn Belt over the next 10 days is more concerning than normal. We are at least a few weeks behind normal when it comes to pollination this year.

The most recent Crop Progress report showed that corn silking is only at 17%. The five-year average is 42%. Two key states that show the importance of this data are Illinois and Iowa. Illinois is 48% behind the five-year average while Iowa is 32% behind.

In the last five years, those two states have combined for 33% of the total U.S. corn production. Download the full article to see what the funds have done over the last few weeks.

Here’s this week’s Successful Marketing Newsletter.

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