Grain Spreads: Corn Cover
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Commentary
December corn futures rose 5 3/4 cents to $4.18, near the session high after hitting a contract low early on. The corn futures market saw short covering today, following the recent strong selling pressure. The world corn inventory per last week’s USDA is expected to fall to its lowest level in over a decade this year, giving that grain some much needed support in my opinion. We are also starting to see more field reports indicating pollination in extreme heat may have impacted the crop more than thought. That said, the current weather conditions remain favorable for crop development as the good to excellent category came in for corn at 74% good to excellent this afternoon. Technically the market has work to do turn bullish or at least friendly. We have a major gap at 429 to 433 from the July 7th and then the 5% down for year marker at 435. We need to clear those areas to challenge the July 3rd high at 443. Should we close above these it turns friendly. Support sits at 412/411. A close under and its 403. A close under 4.03 and we could see 3.90, which represents 15% down for the year.
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Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
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