July Corn closed 5 cents higher ($3.29), Sept 4 ¾ cents higher ($3.333 ¼) & Dec 4 ½ cents higher ($3.42 ¾)
June Chgo Ethanol closed $0.038 cents a gallon higher ($1.185), July $0.038 cents higher ($1.172)
Weekly Corn Export Sales – 637.5 K T. old crop vs. 400-900 K T. expected – 27.5 K T. new crop vs. 50-300 K T. expected
Spec short covering spurred on by strength elsewhere within the Ag complex set the tone for the day. Weekly export sales I did not think were any big deal. The continued slide in the US dollar helps the US export market compete against the new crop coming out of S. America. Weather forecasts remain conducive to a good start for the US corn crop.
I’m not seeing many changes with the Midwestern corn basis other than sustaining the underlying firm tone. The Gulf is relatively quiet. Corn spreads showed a slight bullish bias which I’ll attribute to the spec short covering.
Here we are again with the corn market in line to challenge trading range highs. With weather appearing to be non-threatening follow through will have to come from strength elsewhere within the Ag complex and/or a continued slide in the US dollar. If one looks at the corn charts from a strictly technical approach higher prices appear to be in the near term offering.
Daily Support & Resistance – 6/05
July Corn: $3.24 – $3.33
Dec Corn $3.38 – $3.48
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.