July Corn closed 13 ¾ cents lower ($6.75), Sept 8 ¾ cents lower ($5.93 ¼) & Dec 4 ¼ cents lower ($5.72 ¾)
Flat price corn does some backing and filling of its recent rally. Bear spreading was quite noticeable as it appeared to me smaller index funds were moving out of the July contract. There was chatter about the better than expected crop conditions reported by the USDA yesterday afternoon but the midday sell-off was well received. Big time heat is still being forecasted for the Dakotas later this week. Temps will break by mid next week but I’m not seeing much in the way of moisture with the easing temps. As of this writing it looks like some of the best moisture will be in the Ohio River Valley. It appears the western, northwestern Midwest will be maintaining a dry bias.
The interior Midwestern corn basis shows processors with the best levels especially Illinois east. Interior river locations run steady to a shade easier. Despite the July futures contract getting whacked on the spread there is nothing really bearish about old crop corn given our export program and the ongoing ethanol grind.
Despite today’s backing and filling of Monday’s rally the underlying trend remains for higher prices. As long as forecasts suggest a dryer bias for the western, northwestern Midwest I have to think midday corrections will be well received. Today’s inside day should not be viewed as the rally stalling out; just the pause that refreshes.
Daily Support & Resistance – 06/03
July Corn: $6.68 – $7.00
Dec Corn: $5.65 – $5.98
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.