In Monday’s session corn gapped higher on the opening bell and extended session gains throughout the night and start of the day session. Early support came from Friday’s Pro Farmer national yield estimate of 173.2 bus, 7.5 bus below USDA’s Aug estimate. If realize, it would be a 669 MB drop in production. Weather forecasts calling for above normal temps and below normal precip for the western Corn Belt added support as this will result in further deterioration. As of Aug 20, Argentina estimated their harvest progress at 92% g/e, 89% last week and 97% average. As of August 21, Brazil’s second crop corn harvest was estimated at 82% harvested vs 73% last week and 87% average. Technically corn has traded to a new contract high the past two sessions and today traded to the level where a gap was created on the weekly chart back in July 2023. This shows the next level to test is $5.65.
On Tuesday corn opened steady but turned to trade on the defense throughout the night. Profit taking and technical selling were the main features as traders tried to correct an overbought market condition. Rumors that Ukraine is pushing for a ceasefire in the Black Sea war and talk of advancements in the talks with Iran added pressure. Corn was able to shake off the selling pressure and turn higher from bargain hunter buying. Light support was also due to reports that Dr Cordonnier lowered his US corn yield 1 bus to 179.0 bus. Weather forecasts calling for the Northern Plains and western Corn Belt to see above normal temps and below normal precip for the next 7 days added support.
Corn opened Wednesday’s session steady but managed to shake off the early pressure and pushed to post modest gains early in the night. The rally extended once the day session kicked into gear with a lot of the major support spilling over from a sharp rally in wheat. The news that Russia plans on escalating their attacks on Ukraine also added support to corn as it will likely result in Ukraine seeing limited exports of corn.
Light support came from reports that SA is not looking at increasing corn acreage next year. BAGE is estimating Argentina acreage to remain close to steady at 20.8 million. Agroconsult is estimating Brazil’s corn acreage at 57.6 million vs 55.8 million last year.
Last week’s ethanol production was friendly corn, coming in at 1.112 million barrels, up 23,000 barrels from the previous week. Stocks were estimated at 25.21 million, up 85,000 barrels from the previous week. Gas demand also saw a sizable jump.
Corn opened Thursday’s session lower and extended session losses early and throughout the night. Selling was tied to profit taking and technical selling as corn uncovered sell orders once trading to major resistance levels, as well as trading to another new contract high. Hedge selling pressure was also evident once corn traded above $5.35. But production concerns due to adverse weathers help give corn underlining support. Losses were trimmed late in the day session due to weather forecasts calling for above normal temps and below normal precip for a majority of the western Corn Belt for the next 7 to 10 days. This will likely result in the western Corn Belt seeing another week of declining conditions.
Dec corn hit its recent contract low on June 30 at $4.2575 to a new contract high of $5.3875 yesterday. That’s a rally of $1.13.
Sept corn support is $4.30. Dec corn support is at $4.50.
For the week, Sept corn was at $5.12 up 28.25 cents. Dec corn was at $5.365 up 28.0 cents.
Corn Weekly Comments August 28
Corn Weekly Comments August 28
In Monday’s session corn gapped higher on the opening bell and extended session gains throughout the night and start of the day session. Early support came from Friday’s Pro Farmer national yield estimate of 173.2 bus, 7.5 bus below USDA’s Aug estimate. If realize, it would be a 669 MB drop in production. Weather forecasts calling for above normal temps and below normal precip for the western Corn Belt added support as this will result in further deterioration. As of Aug 20, Argentina estimated their harvest progress at 92% g/e, 89% last week and 97% average. As of August 21, Brazil’s second crop corn harvest was estimated at 82% harvested vs 73% last week and 87% average. Technically corn has traded to a new contract high the past two sessions and today traded to the level where a gap was created on the weekly chart back in July 2023. This shows the next level to test is $5.65.
On Tuesday corn opened steady but turned to trade on the defense throughout the night. Profit taking and technical selling were the main features as traders tried to correct an overbought market condition. Rumors that Ukraine is pushing for a ceasefire in the Black Sea war and talk of advancements in the talks with Iran added pressure. Corn was able to shake off the selling pressure and turn higher from bargain hunter buying. Light support was also due to reports that Dr Cordonnier lowered his US corn yield 1 bus to 179.0 bus. Weather forecasts calling for the Northern Plains and western Corn Belt to see above normal temps and below normal precip for the next 7 days added support.
Corn opened Wednesday’s session steady but managed to shake off the early pressure and pushed to post modest gains early in the night. The rally extended once the day session kicked into gear with a lot of the major support spilling over from a sharp rally in wheat. The news that Russia plans on escalating their attacks on Ukraine also added support to corn as it will likely result in Ukraine seeing limited exports of corn.
Light support came from reports that SA is not looking at increasing corn acreage next year. BAGE is estimating Argentina acreage to remain close to steady at 20.8 million. Agroconsult is estimating Brazil’s corn acreage at 57.6 million vs 55.8 million last year.
Last week’s ethanol production was friendly corn, coming in at 1.112 million barrels, up 23,000 barrels from the previous week. Stocks were estimated at 25.21 million, up 85,000 barrels from the previous week. Gas demand also saw a sizable jump.
Corn opened Thursday’s session lower and extended session losses early and throughout the night. Selling was tied to profit taking and technical selling as corn uncovered sell orders once trading to major resistance levels, as well as trading to another new contract high. Hedge selling pressure was also evident once corn traded above $5.35. But production concerns due to adverse weathers help give corn underlining support. Losses were trimmed late in the day session due to weather forecasts calling for above normal temps and below normal precip for a majority of the western Corn Belt for the next 7 to 10 days. This will likely result in the western Corn Belt seeing another week of declining conditions.
Dec corn hit its recent contract low on June 30 at $4.2575 to a new contract high of $5.3875 yesterday. That’s a rally of $1.13.
Sept corn support is $4.30. Dec corn support is at $4.50.
For the week, Sept corn was at $5.12 up 28.25 cents. Dec corn was at $5.365 up 28.0 cents.