In Monday’s session corn gapped lower on the opening bell and extended session losses throughout the rest of the night session and into the day. A sharply lower crude oil market pressured corn early in the session. Selling was tied to a pause in the military action between the US and Iran. Technical selling was also noted as corn traded to resistance levels and was experiencing an overbought market condition. A disagreement in the weather models added pressure as one forecast is calling for hot and dry conditions to continue while the other forecast calls for heat to moderate and is also shows better chances for rain. As of July 24, Brazil is estimating the second corn crop harvest to be 44% complete vs 34% last week and 52% average. Harvest has been delayed due to heavy rain. Reports that the US is going to lift the ban on imported cattle from Mexico resulted in a bit of a twinge as this could slow down corn exports.
Corn opened Tuesday’s session higher and continued to trade with gains throughout the night and into the day session. Early support came from Monday afternoon’s Crop Progress report, which showed a much lower crop rating than expected by the trade. Support was also due to news that an unknown destination was in and bought 197 TMT of corn overnight. Technical buying was evident as traders came off the fence once corn hit support. The Northern Plains and western Corn Belt are still expected to see much above temps and little rain over the next 5 days. There is rain in the forecast for Thursday, but dry conditions return for the next 5 days. This will likely result in another week of lower crop ratings next week. The 6-to-10-day forecast does start to moderate heat and call for better chances for rain for the Corn Belt.
In Wednesday’s session corn opened higher but turned lower and extended losses throughout the night and into the day session. Early support was due to technical buying as traders tried to bounce corn off minor support. A sharply higher crude oil contracts added support early. Selling was due to weather forecasts calling for solid chance for rain to start in the western Corn Belt tomorrow and move its way across the Corn Belt. Mid-term and long-term forecasts are also calling for cooler, wetter conditions. Private analysts are coming out with their yield projections for the next USDA report. Dr Cordonnier left his US corn yield estimate unchanged at 181 bu.
Last week’s ethanol production estimate was friendly corn as it showed a good increase. Last week’s production was estimated at 1.133 million barrels, up 39,000 barrels from the previous week. Stocks were estimated at 24.73 million, up 245,000 barrels from the previous week. Gas demand increased slightly.
Corn opened Thursday’s session lower but managed to push to post gains by early morning due to spill over support from the rally in wheat. The escalation in the war with Iran and increase drone attacks on export facilities in Russia and Ukraine added support. Gains were kept in check by weather forecasts calling for moderating temps and rain for much of the North Plains and western Corn Belt over the next 7 days. With the increase in area in some stage of drought in the US, it appears that the potential corn yield of 183.0 bu. could be questionable. Corn exports continue to be impressive as after last week, corn sales are now 100 MB above expectation, with 5 weeks left in the marketing year. Technically corn traded to a major support line today and so far, it has held.
Sept corn support is $4.30. Dec corn support is at $4.50.
For the week, Sept corn was at $4.4075 down 23.5 cents. Dec corn was at $4.64 down 23.5 cents.
For the month, Sept corn was up 24.0 cents. Dec corn was up 28.0 cents.
Corn Weekly Comments July 31
Corn Weekly Comments July 31
In Monday’s session corn gapped lower on the opening bell and extended session losses throughout the rest of the night session and into the day. A sharply lower crude oil market pressured corn early in the session. Selling was tied to a pause in the military action between the US and Iran. Technical selling was also noted as corn traded to resistance levels and was experiencing an overbought market condition. A disagreement in the weather models added pressure as one forecast is calling for hot and dry conditions to continue while the other forecast calls for heat to moderate and is also shows better chances for rain. As of July 24, Brazil is estimating the second corn crop harvest to be 44% complete vs 34% last week and 52% average. Harvest has been delayed due to heavy rain. Reports that the US is going to lift the ban on imported cattle from Mexico resulted in a bit of a twinge as this could slow down corn exports.
Corn opened Tuesday’s session higher and continued to trade with gains throughout the night and into the day session. Early support came from Monday afternoon’s Crop Progress report, which showed a much lower crop rating than expected by the trade. Support was also due to news that an unknown destination was in and bought 197 TMT of corn overnight. Technical buying was evident as traders came off the fence once corn hit support. The Northern Plains and western Corn Belt are still expected to see much above temps and little rain over the next 5 days. There is rain in the forecast for Thursday, but dry conditions return for the next 5 days. This will likely result in another week of lower crop ratings next week. The 6-to-10-day forecast does start to moderate heat and call for better chances for rain for the Corn Belt.
In Wednesday’s session corn opened higher but turned lower and extended losses throughout the night and into the day session. Early support was due to technical buying as traders tried to bounce corn off minor support. A sharply higher crude oil contracts added support early. Selling was due to weather forecasts calling for solid chance for rain to start in the western Corn Belt tomorrow and move its way across the Corn Belt. Mid-term and long-term forecasts are also calling for cooler, wetter conditions. Private analysts are coming out with their yield projections for the next USDA report. Dr Cordonnier left his US corn yield estimate unchanged at 181 bu.
Last week’s ethanol production estimate was friendly corn as it showed a good increase. Last week’s production was estimated at 1.133 million barrels, up 39,000 barrels from the previous week. Stocks were estimated at 24.73 million, up 245,000 barrels from the previous week. Gas demand increased slightly.
Corn opened Thursday’s session lower but managed to push to post gains by early morning due to spill over support from the rally in wheat. The escalation in the war with Iran and increase drone attacks on export facilities in Russia and Ukraine added support. Gains were kept in check by weather forecasts calling for moderating temps and rain for much of the North Plains and western Corn Belt over the next 7 days. With the increase in area in some stage of drought in the US, it appears that the potential corn yield of 183.0 bu. could be questionable. Corn exports continue to be impressive as after last week, corn sales are now 100 MB above expectation, with 5 weeks left in the marketing year. Technically corn traded to a major support line today and so far, it has held.
Sept corn support is $4.30. Dec corn support is at $4.50.
For the week, Sept corn was at $4.4075 down 23.5 cents. Dec corn was at $4.64 down 23.5 cents.
For the month, Sept corn was up 24.0 cents. Dec corn was up 28.0 cents.