July Corn closed ¾ cent higher ($6.80), Sept 7 cents higher ($6.28) & Dec 6 ¾ cents higher ($6.09 ½)
In comparison the last number of days the corn trade was relatively quiet while maintaining a firm tone out of respect for the dry forecast for the western Midwest. Adding to that is the possibility of another drawdown in the old crop stocks on Thursday’s USDA supply-demand update. The new crop production data on this report should stay unchanged while the carry-in will be adjusted with the old crop carryout. New crop demand data may see some changes as well. The world data will be interesting see. How much will the Brazilian corn crop be adjusted lower?
Cash markets (basis) stays soft. Index fund rolling continues in the July contract. Sept continues to have a leadership role in the bull spreads.
As long as forecasts show a dry bias out west a weather premium will be maintained in the new crop.
Daily Support & Resistance – 06/09
July Corn: $6.68 – $7.00
Dec Corn: $5.98 ($5.91) – $6.20 ($6.34)
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.