Corn started the week by opening the session firm but quickly faded to trade with losses throughout most of the night session. Losses were trimmed by reports that Japan was in and bought 103 TMT of US corn overnight, 40 TMT old crop and 63 TMT new crop. A lower soybean market pulled corn back into the red, but corn was able to pop on the close and end with modest gains. Technical buying and the fact that prices have gotten cheap enough to encourage exports again helped encourage some traders to go long. Cash corn prices are 33% off of recent highs. Gains were kept in check by weather forecasts calling for the Corn Belt to get general rain for the next 1 to 6 days, then see drier cooler temps. Strong demand gave corn the late session buying spurt it needed to go positive.
Corn opened Tuesday’s session higher and extended session gains early. Early support came from Monday afternoon’s Crop Progress report, which left corn’s rating unchanged but 2% below expectations. Light support was also due to reports of another export sale as an unknown destination was in and bought 120 TMT overnight. Technical buying was also evident as traders try to correct an oversold market condition as well as position squaring ahead of Thursday’s report. Gains were kept in check from reports that Dr Cordonnier increased his corn production estimate for Brazil by 2 MMT to 138 MMT. Argentina was unchanged at 63 MMT.
Corn opened higher and continued to trade with gains throughout Wednesday’s session. Early support was due to technical buying and position squaring ahead of tomorrow’s June Crop Production report. Light support was due to weather forecasts calling for much below normal temps in the 6 to 10 and 11-to-15-day forecasts. AgRural is estimating Brazil’s second corn crop harvest progress at 4% complete.
Last week’s ethanol production was estimated at 1.108 million barrels, unchanged from the previous week. Stocks were estimated at 24.45 million barrels, down 154,000 barrels from the previous week. Gas demand increased slightly this past week.
Corn opened Thursday’s session higher but reversed direction early in the night. Early support was due to profit taking and last-minute position squaring ahead of the report. Selling took charge of corn once the day session got under way and corn extended losses throughout the day. A lower crude oil market added pressure as once again the administration is reporting there is a peace treaty ready to be signed.
Corn extended session losses once USDA released their report as the report had a negative tone to corn. For old crop, USDA increased imports by 3 MB but then swapped 25 MB of ethanol demand with 25 MB of export demand. The net result was a 3 MB increase in stocks, putting old crop stocks at 2.145 BB.
For new crop, the only adjustment was the 3 MB increase in beginning stocks, which put new crop stocks at 1.96 BB, up 3 MB from last week but up 14 MB from expectations.
On the world stage, stocks were estimated at 281.2 MMT up 2.7 MMT from expectation and up 3.7 MT above last months The increase in world stocks was due to Argentina production increasing 2 MMT and Brazil’s production increasing 3.0 MMT. Mexico’s production is expected to drop 700 TMT, and imports are expected to increase by 700 TMT.
July corn support is $4.15. Dec corn support is at $4.35.
For the week, July corn was at $4.1275 down 4.75 cents. Dec corn was at $4.4025 down 5.75 cents.
Corn Weekly Comments June 12
Corn Weekly Comments June 12
Corn started the week by opening the session firm but quickly faded to trade with losses throughout most of the night session. Losses were trimmed by reports that Japan was in and bought 103 TMT of US corn overnight, 40 TMT old crop and 63 TMT new crop. A lower soybean market pulled corn back into the red, but corn was able to pop on the close and end with modest gains. Technical buying and the fact that prices have gotten cheap enough to encourage exports again helped encourage some traders to go long. Cash corn prices are 33% off of recent highs. Gains were kept in check by weather forecasts calling for the Corn Belt to get general rain for the next 1 to 6 days, then see drier cooler temps. Strong demand gave corn the late session buying spurt it needed to go positive.
Corn opened Tuesday’s session higher and extended session gains early. Early support came from Monday afternoon’s Crop Progress report, which left corn’s rating unchanged but 2% below expectations. Light support was also due to reports of another export sale as an unknown destination was in and bought 120 TMT overnight. Technical buying was also evident as traders try to correct an oversold market condition as well as position squaring ahead of Thursday’s report. Gains were kept in check from reports that Dr Cordonnier increased his corn production estimate for Brazil by 2 MMT to 138 MMT. Argentina was unchanged at 63 MMT.
Corn opened higher and continued to trade with gains throughout Wednesday’s session. Early support was due to technical buying and position squaring ahead of tomorrow’s June Crop Production report. Light support was due to weather forecasts calling for much below normal temps in the 6 to 10 and 11-to-15-day forecasts. AgRural is estimating Brazil’s second corn crop harvest progress at 4% complete.
Last week’s ethanol production was estimated at 1.108 million barrels, unchanged from the previous week. Stocks were estimated at 24.45 million barrels, down 154,000 barrels from the previous week. Gas demand increased slightly this past week.
Corn opened Thursday’s session higher but reversed direction early in the night. Early support was due to profit taking and last-minute position squaring ahead of the report. Selling took charge of corn once the day session got under way and corn extended losses throughout the day. A lower crude oil market added pressure as once again the administration is reporting there is a peace treaty ready to be signed.
Corn extended session losses once USDA released their report as the report had a negative tone to corn. For old crop, USDA increased imports by 3 MB but then swapped 25 MB of ethanol demand with 25 MB of export demand. The net result was a 3 MB increase in stocks, putting old crop stocks at 2.145 BB.
For new crop, the only adjustment was the 3 MB increase in beginning stocks, which put new crop stocks at 1.96 BB, up 3 MB from last week but up 14 MB from expectations.
On the world stage, stocks were estimated at 281.2 MMT up 2.7 MMT from expectation and up 3.7 MT above last months The increase in world stocks was due to Argentina production increasing 2 MMT and Brazil’s production increasing 3.0 MMT. Mexico’s production is expected to drop 700 TMT, and imports are expected to increase by 700 TMT.
July corn support is $4.15. Dec corn support is at $4.35.
For the week, July corn was at $4.1275 down 4.75 cents. Dec corn was at $4.4025 down 5.75 cents.