To start the week corn gapped sharply higher on the opening bell and expanded session gains throughout the night and day session. Early support came from the Fact Sheet from the China Summit last week. The Fact Sheet shows China is willing to buy $17 billion in US ag productions over the next three year. Corn is likely on that short list, along with ethanol and DDGs. Early gains were kept in check from Friday’s COT report which showed the funds were busy trimming their long position in corn. Corn’s gains were also kept in check by expectations that the afternoon’s Crop Progress report will show another week of good planting progress. Weather added support as heavy rains were reported in southwest IA, WI, and MI. There are the states seeing slow planting and emergence, along with ND. Weather forecasts are calling for cool wet conditions for the next 7 days. Technically Dec corn needs to close above $5.00 to keep the rally alive.
Corn opened Tuesday’s session lower with early selling pressure tied to Monday afternoon’s better than expected planting progress estimate. According to Monday’s Crop Progress report, corn planting progress has surged forward and is now 6% ahead of the 5-year average pace. Only 3 states remain behind their 5-year average pace (KS: -5%, MI: -5%, and NC: -1%). But the uncertainty surrounding the $17 billion in additional ag products has the market kind of frozen as the $17 B extra demand is more than the value of the 25 MMT (918 MB) of soybeans that China committed to in Oct. The value of the soybeans is $11.5 to $13 B. So, the $17 B in extra demand will likely consist of a bunch of products, which again has traders concerned about selling a market that is ready to stage a significant rally due to strong demand and tight stocks.
In Wednesday’s session corn opened higher but faded to trade lower throughout most of the night. Early support came from uncertainty surrounding the China trade deal. China reported that part of the trade deal has both the US and China removing the 10% tariff on imports. This would help make US grains very competitive in China. Light support was also due to reports of heavy buying of Sept options during Tuesday’s session. Reports of flooding in the southern regions of the Corn Belt added support. But corn lost its gains once crude oil started to stage its heavy sell off.
Last week’s ethanol production was friendly, showing production at 1.11 million barrels, up 29,000 barrels from the previous week. Stocks were estimated at 24.88 million barrels, up 5,000 barrels from the previous week. Gas demand remained unchanged.
Corn opened Thursday’s session lower and extended session losses throughout the night. Early selling was tied to the lack of news and uncertainty on China demand. Losses were trimmed early due to a better-than-expected export sales report, which showed last week’s corn export pace at a 14-week high. A stronger crude oil market added support, but once crude oil faded lower, the selling pressure spilled over to pressure the grains. Light pressure was tied to an increase in CME margin requirements, which is a way to limit trading as it increases the cost of doing business. The lack of progress on the China summit added pressure as neither country has lifted their 10% tariff and no more is known on the $17 B.
Technically corn is testing major support levels and Dec corn needs to close above $5.00 to keep the rally alive.
Hedgers should target $5.15 to advance 2026 sales to 45%.
July corn support is $4.65. Dec corn support is at $4.83.
For the week, July corn was at $4.6325 up 7.5 cents. Dec corn was at $4.865 up 5.5 cents.
Corn Weekly Comments May 22
Corn Weekly Comments May 22
To start the week corn gapped sharply higher on the opening bell and expanded session gains throughout the night and day session. Early support came from the Fact Sheet from the China Summit last week. The Fact Sheet shows China is willing to buy $17 billion in US ag productions over the next three year. Corn is likely on that short list, along with ethanol and DDGs. Early gains were kept in check from Friday’s COT report which showed the funds were busy trimming their long position in corn. Corn’s gains were also kept in check by expectations that the afternoon’s Crop Progress report will show another week of good planting progress. Weather added support as heavy rains were reported in southwest IA, WI, and MI. There are the states seeing slow planting and emergence, along with ND. Weather forecasts are calling for cool wet conditions for the next 7 days. Technically Dec corn needs to close above $5.00 to keep the rally alive.
Corn opened Tuesday’s session lower with early selling pressure tied to Monday afternoon’s better than expected planting progress estimate. According to Monday’s Crop Progress report, corn planting progress has surged forward and is now 6% ahead of the 5-year average pace. Only 3 states remain behind their 5-year average pace (KS: -5%, MI: -5%, and NC: -1%). But the uncertainty surrounding the $17 billion in additional ag products has the market kind of frozen as the $17 B extra demand is more than the value of the 25 MMT (918 MB) of soybeans that China committed to in Oct. The value of the soybeans is $11.5 to $13 B. So, the $17 B in extra demand will likely consist of a bunch of products, which again has traders concerned about selling a market that is ready to stage a significant rally due to strong demand and tight stocks.
In Wednesday’s session corn opened higher but faded to trade lower throughout most of the night. Early support came from uncertainty surrounding the China trade deal. China reported that part of the trade deal has both the US and China removing the 10% tariff on imports. This would help make US grains very competitive in China. Light support was also due to reports of heavy buying of Sept options during Tuesday’s session. Reports of flooding in the southern regions of the Corn Belt added support. But corn lost its gains once crude oil started to stage its heavy sell off.
Last week’s ethanol production was friendly, showing production at 1.11 million barrels, up 29,000 barrels from the previous week. Stocks were estimated at 24.88 million barrels, up 5,000 barrels from the previous week. Gas demand remained unchanged.
Corn opened Thursday’s session lower and extended session losses throughout the night. Early selling was tied to the lack of news and uncertainty on China demand. Losses were trimmed early due to a better-than-expected export sales report, which showed last week’s corn export pace at a 14-week high. A stronger crude oil market added support, but once crude oil faded lower, the selling pressure spilled over to pressure the grains. Light pressure was tied to an increase in CME margin requirements, which is a way to limit trading as it increases the cost of doing business. The lack of progress on the China summit added pressure as neither country has lifted their 10% tariff and no more is known on the $17 B.
Technically corn is testing major support levels and Dec corn needs to close above $5.00 to keep the rally alive.
Hedgers should target $5.15 to advance 2026 sales to 45%.
July corn support is $4.65. Dec corn support is at $4.83.
For the week, July corn was at $4.6325 up 7.5 cents. Dec corn was at $4.865 up 5.5 cents.