In Monday’s session corn opened lower and extended session losses throughout the session. Early selling was tied to spill over pressure from a sharply lower crude oil market. Expectations that the afternoon’s Crop Progress report is going to show improving conditions added pressure. Light selling came from Friday’s COT report which shows the funds have now liquidated their long positions and are net short corn. The news was negative enough that corn traded to a new contract low. Corn was able to bounce off that low and pushed to trade with small gains late in the session. Strong demand helped corn bounce off support. As of June 12, Brazil’s second crop corn harvest was estimated at 3% complete vs 1% last week and vs 3% average.
Corn opened lower in Tuesday’s session and extended losses throughout the night. Early selling was tied to Monday’s Crop Progress report, which showed a slight improvement to corn’s crop condition rating. Another week of non-threatening weather forecasts added to the pressure. It also did not help that Dr Cordonnier increased his US corn yield estimate 1 bu. to 182 bu. A private analyst released their acreage estimate for corn. The group is estimating corn acreage at 96.0 million vs 95.3 million in March.
The selling was enough to push corn to another new contract low, which uncovered buy stops and helped corn surge higher at the start of the day session. Technical buying with bargain hunting, the main supporting factor, helped support corn as did the need to correct an oversold market condition. But the market faded in the second half of the day session and corn closed with small losses in the front months and small gains in the new crop contracts.
Corn opened Wednesday’s session with gains and continued to trade with gains throughout the session. Technical buying added support, building on Tuesday’s strong performance. Position squaring and profit taking ahead of the long weekend was also evident. Corn demand remains strong and at the current pace, it looks like USDA will have to increase corn’s export sales pace in their next Crop Production report. Producers who have July basis contracts should consider rolling the positions ahead to Sept. The cost to roll would roughly be 9 cents while an at the money call option will cost 20 cents.
Last week’s ethanol production pace was estimated at 1.102 million barrels, down 6,000 barrels from the previous week. Stocks were estimated at 24.47 million barrels, up 22,000 barrels from the previous week. Gas demand was sharply higher.
July corn support is $4.15. Dec corn support is at $4.35.
For the week, July corn was at $4.175 up 4.75 cents. Dec corn was at $4.44 up 3.75 cents.
Corn Weekly Comments June 18
Corn Weekly Comments June 18
In Monday’s session corn opened lower and extended session losses throughout the session. Early selling was tied to spill over pressure from a sharply lower crude oil market. Expectations that the afternoon’s Crop Progress report is going to show improving conditions added pressure. Light selling came from Friday’s COT report which shows the funds have now liquidated their long positions and are net short corn. The news was negative enough that corn traded to a new contract low. Corn was able to bounce off that low and pushed to trade with small gains late in the session. Strong demand helped corn bounce off support. As of June 12, Brazil’s second crop corn harvest was estimated at 3% complete vs 1% last week and vs 3% average.
Corn opened lower in Tuesday’s session and extended losses throughout the night. Early selling was tied to Monday’s Crop Progress report, which showed a slight improvement to corn’s crop condition rating. Another week of non-threatening weather forecasts added to the pressure. It also did not help that Dr Cordonnier increased his US corn yield estimate 1 bu. to 182 bu. A private analyst released their acreage estimate for corn. The group is estimating corn acreage at 96.0 million vs 95.3 million in March.
The selling was enough to push corn to another new contract low, which uncovered buy stops and helped corn surge higher at the start of the day session. Technical buying with bargain hunting, the main supporting factor, helped support corn as did the need to correct an oversold market condition. But the market faded in the second half of the day session and corn closed with small losses in the front months and small gains in the new crop contracts.
Corn opened Wednesday’s session with gains and continued to trade with gains throughout the session. Technical buying added support, building on Tuesday’s strong performance. Position squaring and profit taking ahead of the long weekend was also evident. Corn demand remains strong and at the current pace, it looks like USDA will have to increase corn’s export sales pace in their next Crop Production report. Producers who have July basis contracts should consider rolling the positions ahead to Sept. The cost to roll would roughly be 9 cents while an at the money call option will cost 20 cents.
Last week’s ethanol production pace was estimated at 1.102 million barrels, down 6,000 barrels from the previous week. Stocks were estimated at 24.47 million barrels, up 22,000 barrels from the previous week. Gas demand was sharply higher.
July corn support is $4.15. Dec corn support is at $4.35.
For the week, July corn was at $4.175 up 4.75 cents. Dec corn was at $4.44 up 3.75 cents.