July Corn closed 3 ½ cents lower ($6.52 ½), Sept 9 ¼ cents lower ($5.42 ¾) & Dec 8 ¾ cents lower ($5.31)
Corn futures bounce in the overnight session but renewed selling surfaces during the first half of the day session. Dec corn traded as much as 20 cents lower before finding some support. Short term oversold seemed like the best rationale for the bounce off of the mid-morning lows. Prices stabilized for the balance of the session trading between 6 and 10 cents lower. Rains that were forecasted for Iowa did not seem like much as of this writing but more is forecasted for Friday, Saturday. Illinois east is forecasted to see rains later today with more this weekend with cooler temps. I’m not seeing much for the Dakotas/Minnesota.
On Monday the USDA will update corn Supply-Demand using the June 30th acres. Normally they don’t fool with the yield but they can adjust demand. Last year the corn crop was rated at 71% GE with a yield of 178.5 bpa. This year for the same time frame the rating is 64% GE and the recent yield has been 179.5 bpa. This could make a case for a minor yield adjustment. As far as world numbers are concerned the US should see a hike in production but this should more than offset by another decline in Brazilian corn production.
Going forward over the next few days my bias is to see an attempt at some consolidation. We’re at the point rains have been forecasted and now we sit back to see how they materialize.
Daily Support & Resistance – 07/08
Sept Corn: $5.30 ($5.20) – $5.58
Dec Corn: $5.20 ($5.10) – $5.46
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