Corn Commentary
July Corn closed ½ cent higher ($3.94), Sept ¾ cent higher ($4.03 ¼) & Dec ½ cent higher ($4.13 ¾)
June Chgo Ethanol closed 0.002 cents a gallon higher ($1.462), July 0.001 cents higher ($1.482)
Weekly Corn Export Sales – old crop 700 K – 1.000 M T. expected – new crop vs. 150-350 K T. expected
Wednesday night brought us higher corn prices. The day session’s onset furthered those gains but they were unsustainable. The highs of the day were made in those first 15 minutes of the day session. The balance of the session was spent grinding back to unchanged levels. This type of price action tells me the spec/fund sector is still in a liquidation mode. As of this writing most weather forecasts do not offer anything too threatening. If the corn market is to reverse the suggested sell signal from Tuesday we are going to need some detrimental weather.
Interior cash corn markets read mixed. Ohio River bids are down sharply, Illinois River bids read slightly better and processor bids appear to be fully steady. I can’t imagine there is much corn moving from the producer given the recent break in the flat price. The Gulf market continues to show a grinding higher type motion. Corn spreads too remain in a grinding type motion; grinding wider. As much as I think we are currently the corn market to the World our futures’ spreads suggest we have the corn to meet the demand and then some.
The price action on Thursday suggests to me the spec sector remains in a liquidation mode. We try to rally the market early only to see the balance of the day giving it back. That’s not bullish price action. As of this writing it would not surprise me to see July corn test the mid to low $3.80’s and Dec test the mid-low $4.00’s.
Daily Support & Resistance for 06/01
July Corn: $3.90 ($3.88) – $3.98
Dec Corn: $4.10 ($4.08) – $4.18
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