10,695 holds. So far this has been a good technical break, with old lows providing support. However, there has not been any good rallies off of these support levels.
60 ticks is not a very substantial rally. I was looking for 100 to 150 point bounces from these levels.
Evidently, there are ready sellers on any bounce.
Below here we have 10,580 as the next level I’d look to buy. At this point, after a 7day, 1000 pt drop, I am in the opinion that its worth looking to buy dips.
Ultimately, we may go down and test 10,400, but at some point, the market will get over sold.
Friday I tried twice to catch a rally up,only to get stopped out.
As for the corn and beans, early calls are lower beans and higher corn.
USDA dropped the yield 5 bu/acre. to 148.1 from 153. They increased the bean yield from 41.4 to 41.8. Trade was expecting 41. This is bearish beans and bullish corn, on its face.
However, very important:: The USDA dropped the usage on corn 300million bushels, by lowering feed usage 250M, and ethanol usage 100mm.
This on face, seems suspect to me. It may be an effort on the part of the USDA to try to calm what might be a bullish demand spike for corn.
Time will tell.
CER