July Corn closed ½ cent higher ($6.59 ¾), Sept 18 ¼ cents lower ($5.53) & Dec 18 cents lower ($5.39)
Beneficial moisture in the near term forecasts trump the slightly lower than expected crop ratings from yesterday afternoon. We did open higher Monday night from the lower than expected crop ratings but it was a grind lower from then on. I was a bit surprised we took out and closed below the Monday low but it seems the short term weather has better moisture coverage for the state of Iowa. It remains questionable just how much of this moisture extends up into the Dakotas. At this point we just wait and see how this near term weather develops.
Dec corn still trades inside of last Thursday, Friday’s range. Momentum charts still read lower. The latest COT data from the CFTC still show the large spec and managed money continuing to exit this market. Net long positions have been in the decline since mid-April. $5.25 does represent near term support followed by the $5.00 level. Going forward we wait and see how the forecasted moisture for the Corn Belt develops then we get to deal with the Quarterly Stocks and Acreage report. Given how July corn has been acting on the spread the Stocks report will have bullish slant vs. the Acreage report having a bearish slant.
Daily Support & Resistance – 06/23
July Corn: $6.45 – $6.75
Dec Corn: $5.25 – $5.55
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