By admin       2018-08-27

Producers should take comfort in the December contract’s ability to find support above 80 cents, although the inability to hold a price above 83 cents makes earlier predictions of a return to 90 cents seem a little far-fetched. With that said, it isn’t unusual for the market to hit seasonal doldrums in Aug, and trading in an historically high range (80-84) isn’t a bad place to be. Throw in the likelihood of a 6-8 cent payment from the USDA, and producers with a crop should sleep pretty soundly at night. Barring a surprise from the ongoing trade talks or major weather incident, early yields and quality and the Sept WASDE will be our next potential market movers. For next week, the standard weekly technical analysis for and money flow into the December contract remain bearish, but the market also remains in a technically oversold condition. A significant amount of physical support remains under the current market – specifically at 80.00 and above – as we have witnessed over the last two weeks.

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