July Corn closed 32 cents higher ($6.88 ¾), Sept 28 ¾ cents higher ($6.02) & Dec 31 ½ cents higher ($5.77)
Weekly Corn Export Inspections – 2.049 M T. vs. 1.500-2.000 M T. expected
Flat price corn starts sharply higher Sunday night, traded limit up in the day session and finished the day sharply higher. It seems we are looking at our first “hot & dry” scare of the season as the Dakotas are forecasted to flirt with triple degree heat later this week. Over the weekend there were some scattered reports of frost damage in the northwestern Midwest. Much of this was dismissed deferring to talk about the forecasted heat for later this week. Weekly export inspections were stout at just over 2.000 M T. Adding to the day’s excitement was another downgrade to the 2nd season corn crop in Brazil from the consulting agency AgRural. Couple all of this with the sales we already have on the books with China additional risk premium is warranted.
The trade is expecting to see 96% of the intended corn crop planted. The USDA reports 95% of the crop has been planted and 81% emerged. The 5-year norm for planting is 87% and emergence 70%. The first corn crop rating of the season is expected at 70% GE. Range of ideas ran from 64% to 78% GE. The USDA is rating the corn crop at 76% GE vs. 74% GE one year ago.
The latest technical read now has July corn pointing to the resistance that was established two weeks ago; the $7.10 – $7.15 level. Similar resistance targets for December corn are now $6.05 – $6.10.
Daily Support & Resistance – 06/02
July Corn: $6.67 – $7.12
Dec Corn: $5.60 – $6.00
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.