Corn Commentary
July Corn closed 2 cents higher ($4.04 ¾), Sept 2 ¼ cents higher ($4.13 ½) & Dec 2 ¼ cents higher ($4.23 ¼)
June Chgo Ethanol closed 0.003 cents a gallon higher ($1.492), July 0.007 cents higher ($1.515)
Flat price corn stays firm for the 2nd day in a row. Concerns over getting the last 19% of the crop planted plus strength in wheat allowed prices to maintain a firm tone. The majority of the day was spent inside of Monday’s range. July corn fell shy of Monday’s high by ½ cent while Dec corn eclipsed Monday’s high by ¼ cent. In addition to planting concerns the trade still talks about great potential for better business further down the road due to shortfalls in the SA corn crop. So far cash markets, especially export, are not suggest this better business potential. In the north, northwest reaches of the Corn Belt prevent planting dates will occur at the end of this week. My thought is that clear forecasts for next week will have these producers choose to take their chances and will try and plant their remaining acreage next week.
Interior cash corn prices are running mixed as river bids flip-flop from location to location. Processors continue to show the best bids. Monday nights export postings suggest no dire need for corn. Corn spreads continue to show a widening bias which in turn suggests recent strength is speculatively driven vs. demand driven.
Daily trends clearly read higher. Some of the shorter term inter-day and intra-day trends do show a minor degree of overbought. These minor degrees of overbought can be alleviated with lower night time prices. It is my understanding that next Tuesday the USDA will issue its first crop rating of the season. My thought is that on a national level we should see some pretty decent ratings. For the near term recent purchases may want to protect themselves with closing sell stops below the Monday, Tuesday lows of this week.
Daily Support & Resistance for 05/23
July Corn: $4.00 ½ – $4.08
Dec Corn: $4.18 ½ – $4.26
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