In Monday’s session corn opened lower and extended session losses throughout the day. Early selling was tied to the rolling of July positions into deferred contracts. Light selling was also tied to good growing conditions and the expectation that the crop rating will improve this past week. The funds continue to push corn lower, adding to their short positions. One would expect that strong demand should start to play a role in corn’s trading direction. Losses were kept in check by a strong crude oil market while a lower wheat complex added pressure. As of June 26, Brazil was reporting their second corn crop harvest progress at 11% vs 6% last week and 13% average.
Corn opened Tuesday’s session lower but managed to turn and trade with small gains throughout most of the night. Last minute position squaring ahead of USDA’s reports resulted in corn’s early support. Technical buying was also evident as traders try to correct an oversold market condition. Traders extended corn’s gains once the USDA reports were released as both reports were neutral to friendly corn.
The Quarterly Grains Stocks estimate put corn stocks at 5.295 BB. 113 MB below expectations but 652 MB above last year. The lower-than-expected stocks estimate and strong export sales pace for corn will likely result in USDA increasing both feed demand and exports in their next Crop Production estimate.
Corn’s planted acreage estimate was estimated at 95.343 million, 351,000 above expectations but 3.445 million below last year. This is the 4th largest corn planted acreage estimate reported since 1944. Corn acreage is expected to either decline or remain steady in 40 of the 48 states vs last year.
Corn opened Wednesday’s session steady and continued to trade with minor changes throughout the night. Corn was able to shake off the early pressure and turn higher once the day session started. Early pressure was due to favorable weather forecasts. Forecasts are calling for the entire 48 states to see hot conditions mixed in with hit or miss showers. Losses were trimmed once soybeans started to rally off rumors of China buying. Technical buying added support as corn is oversold and in need of a correction. Light support came from the same weather forecasts. Right now, warm and wet would be bearish corn as the crop needs to accumulate GGDs but if the forecasted high-pressure ridge lingers longer, it could result in yield loss. Corn has started pollination and should be in the thick of it by middle of July.
Last week’s ethanol production estimate was friendly as it put last week’s pace at 1.117 million barrels, up 27,000 barrels from the previous week. Stocks were estimated at 24.69 million, up 105,000 barrels from the previous week. Gas demand was also higher.
Sept corn support is $4.05. Dec corn support is at $4.15.
For the week, July corn was at $4.25 up 12.25 cents. Dec corn was unchanged at $4.405.
For the month, July corn was down 34.0 cents. Dec corn was down 39.0 cents.
Corn Weekly Comments July 2
Corn Weekly Comments July 2
In Monday’s session corn opened lower and extended session losses throughout the day. Early selling was tied to the rolling of July positions into deferred contracts. Light selling was also tied to good growing conditions and the expectation that the crop rating will improve this past week. The funds continue to push corn lower, adding to their short positions. One would expect that strong demand should start to play a role in corn’s trading direction. Losses were kept in check by a strong crude oil market while a lower wheat complex added pressure. As of June 26, Brazil was reporting their second corn crop harvest progress at 11% vs 6% last week and 13% average.
Corn opened Tuesday’s session lower but managed to turn and trade with small gains throughout most of the night. Last minute position squaring ahead of USDA’s reports resulted in corn’s early support. Technical buying was also evident as traders try to correct an oversold market condition. Traders extended corn’s gains once the USDA reports were released as both reports were neutral to friendly corn.
The Quarterly Grains Stocks estimate put corn stocks at 5.295 BB. 113 MB below expectations but 652 MB above last year. The lower-than-expected stocks estimate and strong export sales pace for corn will likely result in USDA increasing both feed demand and exports in their next Crop Production estimate.
Corn’s planted acreage estimate was estimated at 95.343 million, 351,000 above expectations but 3.445 million below last year. This is the 4th largest corn planted acreage estimate reported since 1944. Corn acreage is expected to either decline or remain steady in 40 of the 48 states vs last year.
Corn opened Wednesday’s session steady and continued to trade with minor changes throughout the night. Corn was able to shake off the early pressure and turn higher once the day session started. Early pressure was due to favorable weather forecasts. Forecasts are calling for the entire 48 states to see hot conditions mixed in with hit or miss showers. Losses were trimmed once soybeans started to rally off rumors of China buying. Technical buying added support as corn is oversold and in need of a correction. Light support came from the same weather forecasts. Right now, warm and wet would be bearish corn as the crop needs to accumulate GGDs but if the forecasted high-pressure ridge lingers longer, it could result in yield loss. Corn has started pollination and should be in the thick of it by middle of July.
Last week’s ethanol production estimate was friendly as it put last week’s pace at 1.117 million barrels, up 27,000 barrels from the previous week. Stocks were estimated at 24.69 million, up 105,000 barrels from the previous week. Gas demand was also higher.
Sept corn support is $4.05. Dec corn support is at $4.15.
For the week, July corn was at $4.25 up 12.25 cents. Dec corn was unchanged at $4.405.
For the month, July corn was down 34.0 cents. Dec corn was down 39.0 cents.