To start the week corn opened steady and extended session gains right out of the gate. Technical buying was the main supporting factor. A sharply lower US dollar and higher wheat complex added support. Gains were kept in check by Friday’s COT report, which showed the funds are now short corn for the first time since Oct. Weather forecasts continue to cast a negative tone for corn, but the long-term forecast calling for June/July/August to see below normal precip and above normal temps helped give corn some lift today. Last week’s export inspections pace added support, as old crop demand remains robust. As of May 16, Brazil is reporting first crop corn harvest at 96% complete vs 92% last week and 91% average. Harvest for the second corn crop will begin in about 6 weeks.
Corn opened Tuesday’s session lower but shook off the early selling pressure to push higher and extended session gains once the day session started. Early support was due to technical strength as traders were needing to correct an oversold condition. Light support also spilled over from the strong wheat complex as wheat and corn continue to move in tandem. Thoughts that not all of the intended acreage of corn will get planted added support. Last planting date for crop insurance for most of ND and northern MN is May 25 and by the looks of this rain system moving through, it will be a solid week before producers return to the field. Heavy rains in the Northern Plains and western Corn Belt added support. Gains were kept in check by Dr Cordonnier’s production estimate for Brazil’s corn, which he raised 2 MMT to 129 MMT. Argentina’s production was left unchanged at 50 MMT.
On Wednesday corn opened the session steady but managed to firm and trade with small gains by the time the night session came to a close. Early pressure was due to rapid planting progress as most of the major corn producing regions of the US are showing rapid planting progress. But those losses were trimmed by the fact that this week’s weather will likely dramatically slow down planting progress in the Plains and western Corn Belt. Strong demand combined with a lower US dollar and fund short covering to push corn higher into the day session. Support came from BAGE comments stating Argentina will soon increase their corn export.
Last week’s ethanol production pace was estimated at 1.036 million barrels, up 43,000 barrels from their previous week and at the top of expectations. Stocks were estimated at 24.94 million barrels, a cut of 501,000 barrels from the previous week. Gas demand dwindled a bit.
In Thursday’s session corn opened lower overnight and extended losses throughout the night. Losses were trimmed close to the end of the night session with support coming from another strong weekly export sales estimate. Light support came from the realization that 20 million acres of corn are left to plant, and it is likely producers will be out of the fields for another week. Last planting date for much of the Northern Plains is fast approaching (May 25 for most of ND, western SD, and northern MN). Talk of significant drowned out added support as much of the Northern Plains are finally getting a look at aftereffects of the past week to 10 days of rain. Profit taking and bull spreading was also evident as traders adjust positions ahead of the long weekend. Argo Consult is estimating Brazil’s second corn crop at 112.9 MMT, up 10.5% over last year and a new record.
Technically July corn has dropped 85 cents from their Feb high to their May low. This week’s push had July corn testing their 35% retracement level. The next resistance level is $4.80.
Target $5.15 to advance sales.
For the week, July corn was at $4.595 up 16.0 cents. Dec corn was at $4.5075 up 15.25 cents.
Corn Weekly Comments May 23
Corn Weekly Comments May 23
To start the week corn opened steady and extended session gains right out of the gate. Technical buying was the main supporting factor. A sharply lower US dollar and higher wheat complex added support. Gains were kept in check by Friday’s COT report, which showed the funds are now short corn for the first time since Oct. Weather forecasts continue to cast a negative tone for corn, but the long-term forecast calling for June/July/August to see below normal precip and above normal temps helped give corn some lift today. Last week’s export inspections pace added support, as old crop demand remains robust. As of May 16, Brazil is reporting first crop corn harvest at 96% complete vs 92% last week and 91% average. Harvest for the second corn crop will begin in about 6 weeks.
Corn opened Tuesday’s session lower but shook off the early selling pressure to push higher and extended session gains once the day session started. Early support was due to technical strength as traders were needing to correct an oversold condition. Light support also spilled over from the strong wheat complex as wheat and corn continue to move in tandem. Thoughts that not all of the intended acreage of corn will get planted added support. Last planting date for crop insurance for most of ND and northern MN is May 25 and by the looks of this rain system moving through, it will be a solid week before producers return to the field. Heavy rains in the Northern Plains and western Corn Belt added support. Gains were kept in check by Dr Cordonnier’s production estimate for Brazil’s corn, which he raised 2 MMT to 129 MMT. Argentina’s production was left unchanged at 50 MMT.
On Wednesday corn opened the session steady but managed to firm and trade with small gains by the time the night session came to a close. Early pressure was due to rapid planting progress as most of the major corn producing regions of the US are showing rapid planting progress. But those losses were trimmed by the fact that this week’s weather will likely dramatically slow down planting progress in the Plains and western Corn Belt. Strong demand combined with a lower US dollar and fund short covering to push corn higher into the day session. Support came from BAGE comments stating Argentina will soon increase their corn export.
Last week’s ethanol production pace was estimated at 1.036 million barrels, up 43,000 barrels from their previous week and at the top of expectations. Stocks were estimated at 24.94 million barrels, a cut of 501,000 barrels from the previous week. Gas demand dwindled a bit.
In Thursday’s session corn opened lower overnight and extended losses throughout the night. Losses were trimmed close to the end of the night session with support coming from another strong weekly export sales estimate. Light support came from the realization that 20 million acres of corn are left to plant, and it is likely producers will be out of the fields for another week. Last planting date for much of the Northern Plains is fast approaching (May 25 for most of ND, western SD, and northern MN). Talk of significant drowned out added support as much of the Northern Plains are finally getting a look at aftereffects of the past week to 10 days of rain. Profit taking and bull spreading was also evident as traders adjust positions ahead of the long weekend. Argo Consult is estimating Brazil’s second corn crop at 112.9 MMT, up 10.5% over last year and a new record.
Technically July corn has dropped 85 cents from their Feb high to their May low. This week’s push had July corn testing their 35% retracement level. The next resistance level is $4.80.
Target $5.15 to advance sales.
For the week, July corn was at $4.595 up 16.0 cents. Dec corn was at $4.5075 up 15.25 cents.