July Corn closed 2 cents higher ($3.52 ½), Sept 1 ¾ cents higher ($3.61 ¼) & Dec 1 ¾ cents higher ($3.73 ¼)
July Chgo Ethanol closed 0.001 cents a gallon lower ($1.394), August 0.004 cents higher ($1.417)
Flat price corn goes it alone on Tuesday as it bucks the lower influence from wheat and soybeans. Fractional bull spreading was evident led by the July contract. This spreading can be tied to first notice day which occurs on Friday. The shorts in corn may be giving some respect to the forecasts calling for some relatively hot temps that are to be seen over the next week or so. In selected areas of the Midwest the corn crop is starting its pollination cycle and will continue into mid-July. If the heat is big enough it can impact pollination. I also think some respect is being given to the acreage report due out at the end of the week. What if the USDA does not give the trade the acreage increases it is looking for as it has laid out an excellent demand base for the new marketing year?
Cash corn markets are quiet with processors showing the best bid structure. River locations are mostly steady but not backing off from recent improvement. The Gulf market appears to be edging higher. I can’t imagine there is much cash corn moving other than previously contracted. As I mentioned earlier nearby spreads were showing fractional improvement. It will be interesting to see how deliveries on Friday pan out given the ongoing export demand.
During the course of the Monday night, Tuesday trade the corn market tried to sell off on three different occasions. Each time it managed to come back. It is my thought the shorts are playing the “what if” game. What if the USDA doesn’t give them the acreage increases they are looking for and/or what if the forecasted heat lasts longer than originally thought? All of this suggests further consolidation ahead of Friday.
Daily Support & Resistance for 06/27
Sept Corn: $3.55 ($3.52) – $3.66
Dec Corn: $3.67 ($3.64) – $3.78
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