To start the week corn gapped higher on the opening bell and extended gains throughout the night and into the day session. Early support was due to reports of Columbia being in and buying 100 TMT of US corn overnight. Light support came from reports that Russia attacked a Ukraine vessel over the weekend loaded with corn. This is a sign that shipping grain in the Black Sea has become increasingly difficult. Another strong weekly export shipments estimate added support.
Concerns that the EU corn crop is just going to continue to deteriorate and that will result in the EU needing to increase large amounts of corn added support. World corn production is expected to be at 24 year low. Adverse weather conditions added support as the Northern Plains and western Corn Belt are expected to see above temps and below normal precip for the next 10 days. As of July 17, Brazil was estimating second crop corn harvest at 34% harvested vs 22% last week and 40% average.
In Tuesday’s session corn gapped lower at the opening of the session and continued to trade with small losses throughout the overnight session. Early selling was tied to a better-than-expected crop condition rating in Monday’s Crop Progress report. Light selling was also tied to forecasts calling for a brief cooldown over the next few days for the western Corn Belt. But once wheat turned higher, corn followed and by midsession corn was able to post decent gains.
The updated forecast increased the heat for the Northern Plains and western Corn Belt in the 1 to 5 day and pulled rain out of the 1 to 5 and 6-to-10-day forecasts. The 11-to-15-day forecast continues to show better chances of rain. Technically on the charts corn put in a key reversal, which is a higher high, lower low but higher close than the previous session. This formation is friendly but needs to be verified by a higher close on Wednesday. At this point, the Northern Plains and western Corn Belt are showing little to no chance for rain for the next 10 days and temps are expected to push back to be above normal by the weekend.
On Wednesday corn opened lower but quickly reversed direction and extended gains throughout the night. Early support came from the escalation in the war between Ukraine and Russia as it is starting to cause shipping issues. Light support spilled over from the sharply higher wheat exchanges. Reports Dr Cordonnier lowered his US corn yield 1 bus to 181 added strength. Weather forecasts calling for hot dry conditions for the Northern Plains and western Corn Belt for the next 7 to 10 days added support.
Last week’s ethanol production estimated production at 1.094 million barrels, up 54,000 barrels from the previous week. Stocks were estimated at 24.48 million barrels, up 90,000 barrels from the previous week.
Corn opened Thursday’s session lower but firmed to trade with solid gains by the end of the night session. Early support came from another strong weekly export sales estimate. Continued escalation in the war with Iran and reports of more drone attacks in the Strait of Hormuz, the Black Sea region, and in the Red Sea added support. Weather forecasts continue to call for adverse weather conditions for the Northern Plains and parts of the Coen Belt added support. The noon update reduced the amount of rain expected for the Corn Belt. Since the end of June Dec corn has rallied 60.75 cents but has not traded to or through the May high.
Sept corn support is $4.30. Dec corn support is at $4.50.
For the week, Sept corn was at $4.6425 up 19.5 cents. Dec corn was at $4.875 up 20.0 cents.
Corn Weekly Comments July 24
Corn Weekly Comments July 24
To start the week corn gapped higher on the opening bell and extended gains throughout the night and into the day session. Early support was due to reports of Columbia being in and buying 100 TMT of US corn overnight. Light support came from reports that Russia attacked a Ukraine vessel over the weekend loaded with corn. This is a sign that shipping grain in the Black Sea has become increasingly difficult. Another strong weekly export shipments estimate added support.
Concerns that the EU corn crop is just going to continue to deteriorate and that will result in the EU needing to increase large amounts of corn added support. World corn production is expected to be at 24 year low. Adverse weather conditions added support as the Northern Plains and western Corn Belt are expected to see above temps and below normal precip for the next 10 days. As of July 17, Brazil was estimating second crop corn harvest at 34% harvested vs 22% last week and 40% average.
In Tuesday’s session corn gapped lower at the opening of the session and continued to trade with small losses throughout the overnight session. Early selling was tied to a better-than-expected crop condition rating in Monday’s Crop Progress report. Light selling was also tied to forecasts calling for a brief cooldown over the next few days for the western Corn Belt. But once wheat turned higher, corn followed and by midsession corn was able to post decent gains.
The updated forecast increased the heat for the Northern Plains and western Corn Belt in the 1 to 5 day and pulled rain out of the 1 to 5 and 6-to-10-day forecasts. The 11-to-15-day forecast continues to show better chances of rain. Technically on the charts corn put in a key reversal, which is a higher high, lower low but higher close than the previous session. This formation is friendly but needs to be verified by a higher close on Wednesday. At this point, the Northern Plains and western Corn Belt are showing little to no chance for rain for the next 10 days and temps are expected to push back to be above normal by the weekend.
On Wednesday corn opened lower but quickly reversed direction and extended gains throughout the night. Early support came from the escalation in the war between Ukraine and Russia as it is starting to cause shipping issues. Light support spilled over from the sharply higher wheat exchanges. Reports Dr Cordonnier lowered his US corn yield 1 bus to 181 added strength. Weather forecasts calling for hot dry conditions for the Northern Plains and western Corn Belt for the next 7 to 10 days added support.
Last week’s ethanol production estimated production at 1.094 million barrels, up 54,000 barrels from the previous week. Stocks were estimated at 24.48 million barrels, up 90,000 barrels from the previous week.
Corn opened Thursday’s session lower but firmed to trade with solid gains by the end of the night session. Early support came from another strong weekly export sales estimate. Continued escalation in the war with Iran and reports of more drone attacks in the Strait of Hormuz, the Black Sea region, and in the Red Sea added support. Weather forecasts continue to call for adverse weather conditions for the Northern Plains and parts of the Coen Belt added support. The noon update reduced the amount of rain expected for the Corn Belt. Since the end of June Dec corn has rallied 60.75 cents but has not traded to or through the May high.
Sept corn support is $4.30. Dec corn support is at $4.50.
For the week, Sept corn was at $4.6425 up 19.5 cents. Dec corn was at $4.875 up 20.0 cents.