July Corn closed 13 cents lower ($6.62), Sept 11 cents lower ($5.82 ¼) & Dec 6 ¼ cents lower ($5.66 ½)
Weekly Ethanol Grind – May 28th – 1.034 M bpd vs. 1.011 M week ago – Stocks – 19.6 M bbls vs. 19.0 M week ago
Weekly Corn Export Sales – old crop vs. -200 +400 K T. expected – new crop vs. 300-900 K T. expected
Rolling out of long July continues and it doesn’t look like those longs are moving to the Sept but rather the Dec. Weather forecasts continue to show big heat in the western, northwestern over the next number of days. The big heat numbers are expected to ease by mid next week. Moisture prospects look to favor the central and eastern Midwest once the heat starts to ease. The weekly ethanol grind continues to show strong corn usage numbers.
The interior cash corn markets (basis) continue to be quiet. The Gulf basis continues its slide that started back in the third week of May. Given the weekly ethanol grind and the ongoing old crop export program basis levels are suggesting ample corn supplies are in the pipeline.
If the gap higher that was created from last Friday to Tuesday’s opening is regarded as support then July corn is now in support. Dec corn is in the throes of our first weather play of the season. I would expect Friday will be no worse than what we saw today in respect of the forecasted big heat. Sunday night could be another biggie as we assess the weekend’s heat and what forecasts may have for us going forward.
Daily Support & Resistance – 06/04
July Corn: $6.50 – $6.78
Dec Corn: $5.56 – $5.80
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