CBOT weekly outlook: Soy, corn could retest highs

Wheat now 'doing its own thing'

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Published: October 14, 2020

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

MarketsFarm — Soybean and corn futures at the Chicago Board of Trade backed away from nearby highs over the past week, but could be poised to retest those levels as the underlying fundamentals remain supportive.

“I think we’ll need another headline of sorts, whether it be a weather or sales numbers (headline), to push corn up a few more cents,” said John Weyer, director of commercial hedging with Walsh Trading in Chicago.

He added that “beans continue to run with the South American weather story.” As long as dryness issues continue to slow soybean planting there, he expected Chicago futures would remain supportive.

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November soybeans hit an intersession high of $10.7975 per bushel on Friday (Oct. 9), but has not closed above $10.655 (all figures US$). December corn hit a session high of $3.9925 per bushel on Monday.

“I think we’ll take another run at those highs,” Weyer said; a close above $10.48 per bushel would be supportive in soybeans, he added, with the next upside target in the $10.70 per bushel area.

For corn, nearby resistance in the December contract is seen in the $3.95-$4 per bushel area.

Wheat is “doing its own thing,” according to Weyer, but could push above $6 per bushel in the December Chicago contract “if we get anything supportive there.”

The wheat market was trading mostly off of world supply/demand news, he said, with weather in the Black Sea region one factor to watch.

— 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.

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