Corn Commentary

storck

Corn – Just My Opinion

Sept Corn closed ½ cent higher ($3.41 ¾), Dec ½ cent higher ($3.55 ¼) & March ¾ cent higher ($3.67 ¼)

August Chgo Ethanol closed 0.004 cents a gallon higher ($1.405), Sept 0.004 cents higher ($1.404)

Weekly Corn Export Inspections – 1.217 M T. vs. 900 K – 1.500 M T. expected

Weekly Corn Condition & Progress – 72% GE (-3%) vs. 74% expected vs. 64% year ago – Silking – 63% vs. 37% 5-year average

What was positive about this Monday – it wasn’t a “blue” Monday. What was negative about this Monday – the flat price could not hold the early attempt to rally. The perception of good crop conditions and benign looking forecasts continues to weigh on the market. In the early going flat price corn tried to rally with soybeans but as the day went on the flat price was dragged down by lower wheat prices. The end result was another inside day of last Thursday.

Corn processors stand in for corn. Locations involved for export are steady to lower. The Gulf sags as the pipeline appears sufficient. Corn spreads continue sag wider. I have to wonder if we’re seeing some old crop holders throw in the towel as pollination is assessed. As far as that is concerned I’m hearing good and bad; so far more good than bad.

Last Thursday the flat price threw an upside reversal at us. All we’ve seen since then are two inside days. The suggested reversal has yet to be confirmed but then again it has not been negated. So here we sit. Tonight’s crop conditions and subsequent forecasts should provide further direction. (Crop conditions fall greater than expected while forecasts are non-threatening)

Daily Support & Resistance for 07/17

Sept Corn: $3.37 – $3.50  

Dec Corn: $3.49 ½ – $3.64

 

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.