Corn Commentary
May corn expired ¾ cent lower ($3.89), July closed unchanged ($3.96 ½) and Dec ¼ cent lower ($4.14 ¼)
June Chgo Ethanol closed 0.019 cents a gallon higher ($1.478), July 0.017 cents higher ($1.491)
Weekly Corn Export Inspections – 1.554 M T. vs. 1.400-1.800 M T. expected
Corn Progress – 62% planted vs. 59% expected vs. 63% 5-year average – Emerged – 28% vs. 27% 5-year average
Flat price corn gets caught between sinking wheat prices and surging soybean prices. This had corn prices fluctuating from 2 cents lower to 1 cent higher; closes ran steady to fractional losses. First and foremost on corn traders’ minds; will the crop get planted in a near timely manner? Trade expectations have corn plantings at the 60% completion level as of this past Sunday. This week is forecasted to see an active weather pattern across much of the Corn Belt this week. What hasn’t been planted by now will probably have to sit another week. Demand for old crop corn remains quite good but unfortunately spreads stay relatively wide.
Interior cash corn prices run mostly unchanged vs. what was posted late last week. Processors show the best bids out there. River locations run mixed as it comes down to sites that need corn vs. sites that don’t need vs. sites that are having logistical problems. Export prices show a firm level but nothing that appears out of the ordinary. Corn spreads ran steady to fractionally weaker on the day.
Daily momentum technical indicators read lower. Short term, inter-day, technical indicators show a mixed look. The shorter term indicators went home Friday looking fairly low. Today’s consolidation efforts took care of that short term oversold reading. The mid-low $4.00’s should act as short term resistance for July corn while the $4.16-$4.20 level should do the same for December.
Daily Support & Resistance for 05/15
July Corn: $3.94 ($3.92) – $4.01
Dec Corn: $4.12 ($4.10) – $4.18
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.