July Corn closed 8 ½ cents lower ($3.31 ¼), Sept 7 ¾ cents lower ($3.40) & Dec 7 ½ cents lower ($3.53 ¼)
August Chgo Ethanol closed 0.027 cents a gallon lower ($1.398), Sept 0.026 cents lower ($1.401)
Wednesday’s corn trade saw another round of new contract lows and this time new contract low closes went with it. Another round of tariffs against the Chinese has been proposed. If enacted it won’t happen until late August. As far as the weather is concerned it’s going to be rather hot for the next few days with only scattered moisture. The heat is forecasted to break by early next week (depending on where you are in the Corn Belt) and be accompanied by wider spread moisture. The USDA will be out tomorrow at 11:00 AM CDST with updated supply-demand data for both the US and the World. US production is expected to rise based on the additional 1.0 million acres (harvested) the USDA reported on June 29th. I doubt the USDA will raise the yield. The big question will be in the World data. US production is expected to rise while the rest of the World’s production is expected to decline. Will they be offsetting issues?
The interior cash corn market remains quiet with a couple river locations reading higher. The Gulf has been inching higher from late last week’s lows. Corn spreads continue to be on the defensive.
Tomorrow is report day and the market is pretty beat up. What do we do for an encore? Just my opinion – we whoosh it to the downside and that will be the low for a while or we see a knee-jerk reaction to the upside. Maybe I’m out in left field but I think from a time frame we’re close to making lows. From a price standpoint I’m thinking $3.40 (December) give or take a few cents. The $3.40 idea comes from the 2 most recent attempts to correct that have failed. They suggest $3.43 to $3.39 ½.
Daily Support & Resistance for 07/12
Sept Corn: $3.27 (?) – $3.53
Dec Corn: $3.40 (?) – $3.66
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