May Corn closed 8 ¼ cents lower ($5.69), July 6 ¾ cents lower ($5.56) & Dec unchanged ($4.96 ½)
Weekly Corn Inspections – 1.584 M T. vs. 1.200-2.100 M T. expected
After a higher start for old crop corn Sunday night fund selling took over basically picking up where they left off on Friday taking profits on their rather large net long positions. New crop corn saw a two-sided trade; higher early Sunday night followed by lower during the day session. Losses were never as severe as seen in the old crop. The liquidation of the old crop flat price spilled over into the old crop/new crop spreads. Weekly corn export inspections were deemed as so-so as they came in at the lower half of expectations. Other than that I did not see anything other than technical considerations to prompt the sell-off.
Going forward July corn should be able to realize some support in the mid-high to high $5.40’s if the funds continue with their recent liquidation run. Dec corn should be able to hang tough as we work our way through the planting season. Going forward we need more acres so as not to have an unusually tight new crop so the daily chatter will focus on planting conditions whether they be good or bad. I’ve already heard some concern about the dryness in the Northern Plains as well as the current cool temperatures despite it only being April 12th. For what it is worth the NWS continues to call for cool and dry conditions to stay with us into the last week of April. For the near term Dec corn should be able to hold the mid to mid-low $4.80’s until more is known as to the timely planting of the new crop.
Daily Support & Resistance – 04/13
July Corn : $5.48 – $5.64
Dec Corn: $4.87 – $5.00 (?)
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