July Corn closed 2 ¾ cents higher ($3.57), Sept 2 ¾ cents higher ($3.65 ½) & Dec 2 ½ cents higher ($3.78 ¼)
July Chgo Ethanol closed 0.017 cents a gallon higher ($1.420), August 0.016 cents lower ($1.435)
Weekly Corn Export Sales – 165.9 K T. old crop vs. 700 K – 1.000 M T. expected – 339.7 K T. new crop vs. 150-400 K T. expected
After a mixed night session corn futures spent the day session at slightly higher levels. Stronger wheat prices along with some short covering were most responsible for the slightly higher prices. Old crop corn export sales were less than puny while new crop sales were as expected. Recent moisture through the Corn Belt is deemed beneficial for many areas while smaller selected areas may say too much. For the balance of the month into the first week of July forecasts call for a continuation of the recent weather trend. After that many agree to the idea of above normal temps but are mixed on moisture. The latest 30-day and 90-day forecasts from the NWS talk about above normal temps but nothing extreme as to moisture.
Interior cash corn prices have a mixed look to them depending upon locations especially on the river systems that feed to the Gulf. Processors continue to show the best bids. The export market appears quiet with a slightly firmer tone. Corn spreads had a steady to a fractional bullish bias within the 2018-19 marketing year while 2018-19 gains noticeably on the 2019-20 marketing year. July option expiration is tomorrow and first notice day the following Friday.
Since Tuesday’s exhaustion low and the following bounce I’ve seen a couple attempts to sell the market off but to no avail. I have to think this is in respect to the acreage report scheduled for next Friday. So far I’ve heard estimates of 300-500 K acres either side of the March estimate of 88.0 million. My personal bias is to see a slight increase. For the time being my thought has corn prices (Dec) trading between $3.70 and $3.85 up until next Friday.
Daily Support & Resistance for 06/22
July Corn: $3.50 – $3.65
Dec Corn: $3.71 – $3.86
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.