July Corn closed 1 cent higher ($3.19), Sept 1 ¼ cents higher ($3.24) & Dec 1 ¼ cents higher ($3.34)
June Chgo Ethanol closed $0.060 cents per gallon lower ($1.165), July $0.054 cents lower ($1.129)
Weekly Corn Export Inspections – 1.091 M T. vs. 1.000-1.400 M T. expected
USDA reports that 88% of the intended corn crop has been planted vs. 90% expected vs. 82% 5-year average – the condition of the crop is rated 70% GE with no comparison to year ago
Today’s trade was all about speculative short covering. Some of the rationale behind the buying was higher energy (ethanol) prices, lower ideas for the Brazilian 2nd season corn crop and a sharply lower US Dollar. Weekly export inspections came in at the low end of expectations. For the time being as we move into June forecasts appear to be non-threatening to crop development.
Interior cash corn prices (basis) in the Midwest don’t do a whole lot vs. where they were late last week. A couple of river locations appear to be a bit better and an eastern Midwest ethanal processor appears to be a bit better as well. I’m not see much of a change at the midday Gulf posting. Spreads involving the near July lost a quarter cent while Sept forward spreads ran unchanged.
Corn charts remain range bound. The best support is the size of the spec short while the best resistance appears to be just so-so demand and what appears to be a good start to the growing season.
Daily Support & Resistance – 5/27
July Corn: $3.16 ($3.14) – $3.24
Dec Corn $3.31 ($3.29) – $3.39
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.