Corn opened Monday’s session lower and extended session losses early. Early selling was tied to reports of good rain over the weekend for parts of the Corn Belt. Reports of rain in the Northern Plains/Western Corn Belt today added pressure. Although the rain will likely delay planting activity in the Northern Plains/Western Corn Belt for a few days, most are not expecting the rain to slow progress enough to make a difference. Reports that a Chinese official is saying China can survive without US imports add pressure. Expectations that the afternoon’s Crop Progress report will show another strong week of planting activity add pressure. The rapid planting progress has even started to create expectations of higher corn acres than estimated. Losses were trimmed late in the session due to spillover support from the recovery in soybeans and soybean oil (due to expectations for better biofuel mandate). As of April 25, Brazil’s first crop corn harvest was estimated at 82% complete vs 75% last week, and 80% average.
On Tuesday corn opened the session lower and extended losses right out of the gate. Early selling was tied to Monday afternoon’s negative Crop Progress report, which showed another week of strong planting progress. Losses were kept in check early by reports of Spain buying 120 TMT of US corn. But once wheat and soybeans faded lower, corn followed. Selling was tied to conflicting reports on trade talks with China, China saying there have been no talks while the US says there have been, but no one will confirm. Selling was also tied to pressure from end of month positioning. First notice for May is tomorrow so all long positions need to be either liquidated or rolled by today’s close.
In Wednesday’s session corn opened the session higher but turned to trade with minor changes by the end of the day session. Strength returned once the day session kicked back into gear as corn found good strength and rallied to post solid gains by midsession. Early strength was due to technical buying with corn being able to bounce off support. Ukraine’s year to date export pace for corn is at 15.6 MMT vs 20.2 MMT last year. Light support in corn also came from month end position squaring. As well as from another export sale announcement, 120 TMT of corn went to an unknown destination. Corn demand remains strong and with exports still 30% ahead of last year’s pace at this time, it appears that USDA will have to increase their export projections.
Corn opened Thursday’s session lower but managed to shake off the early selling pressure and turn higher before the end of the night session. Technical buying was evident as corn bounced off support. Early support was also due to traders expecting USDA to increase corn export demand in their May Crop Production report. Corn export demand remains strong, which was evident by today’s export sale pace continuing to be over 1 MMT. Corn exports are running about 26% ahead of last year. Light support was also due to comments from China stating the US has finally reached out and is willing to start trade talks. China is looking to increase their domestic corn production by increasing their use of GMO corn varieties. Old crop corn lost gains late in the session due to profit taking from the early week bull spreading. That also added support to new crop.
Target $5.15 to advance sales.
For the week, May corn was at $4.6125 down 17.5 cents while July corn was at $4.69 down 16.5 cents.
For the month, May corn was up 10.0 cents. July corn was up 12.25 cents.
Corn Weekly Comments May 2
Corn Weekly Comments May 2
Corn opened Monday’s session lower and extended session losses early. Early selling was tied to reports of good rain over the weekend for parts of the Corn Belt. Reports of rain in the Northern Plains/Western Corn Belt today added pressure. Although the rain will likely delay planting activity in the Northern Plains/Western Corn Belt for a few days, most are not expecting the rain to slow progress enough to make a difference. Reports that a Chinese official is saying China can survive without US imports add pressure. Expectations that the afternoon’s Crop Progress report will show another strong week of planting activity add pressure. The rapid planting progress has even started to create expectations of higher corn acres than estimated. Losses were trimmed late in the session due to spillover support from the recovery in soybeans and soybean oil (due to expectations for better biofuel mandate). As of April 25, Brazil’s first crop corn harvest was estimated at 82% complete vs 75% last week, and 80% average.
On Tuesday corn opened the session lower and extended losses right out of the gate. Early selling was tied to Monday afternoon’s negative Crop Progress report, which showed another week of strong planting progress. Losses were kept in check early by reports of Spain buying 120 TMT of US corn. But once wheat and soybeans faded lower, corn followed. Selling was tied to conflicting reports on trade talks with China, China saying there have been no talks while the US says there have been, but no one will confirm. Selling was also tied to pressure from end of month positioning. First notice for May is tomorrow so all long positions need to be either liquidated or rolled by today’s close.
In Wednesday’s session corn opened the session higher but turned to trade with minor changes by the end of the day session. Strength returned once the day session kicked back into gear as corn found good strength and rallied to post solid gains by midsession. Early strength was due to technical buying with corn being able to bounce off support. Ukraine’s year to date export pace for corn is at 15.6 MMT vs 20.2 MMT last year. Light support in corn also came from month end position squaring. As well as from another export sale announcement, 120 TMT of corn went to an unknown destination. Corn demand remains strong and with exports still 30% ahead of last year’s pace at this time, it appears that USDA will have to increase their export projections.
Corn opened Thursday’s session lower but managed to shake off the early selling pressure and turn higher before the end of the night session. Technical buying was evident as corn bounced off support. Early support was also due to traders expecting USDA to increase corn export demand in their May Crop Production report. Corn export demand remains strong, which was evident by today’s export sale pace continuing to be over 1 MMT. Corn exports are running about 26% ahead of last year. Light support was also due to comments from China stating the US has finally reached out and is willing to start trade talks. China is looking to increase their domestic corn production by increasing their use of GMO corn varieties. Old crop corn lost gains late in the session due to profit taking from the early week bull spreading. That also added support to new crop.
Target $5.15 to advance sales.
For the week, May corn was at $4.6125 down 17.5 cents while July corn was at $4.69 down 16.5 cents.
For the month, May corn was up 10.0 cents. July corn was up 12.25 cents.