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Corn - Just My Opinion


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Why do we even try to second guess what the USDA may have to say? The USDA cuts planted acres by 5 million (the trade was expecting a cut of 1.8 million acres), cut harvested acres by 5.6 million. The USDA goes on to say that this report includes 2.2 million acres that havent been planted yet. The report was based on data from the respondents between May 30th and June 15th. The Quarterly Stocks report was another jerk-around at 5.223 billion bu. (the trade was expecting 4.955 billion bu.). On the surface the acreage data suggests supply could be cut by nearly 1.0 billion bu. The higher than expected Stocks number suggests the carryin might increase by 200 million bu. Add it all up using the present yield of 178.5 bpa we could see the carryout come much closer to 2.5 billion bu. if not lower. We are currently looking at a threat of hot & dry developing through the first half of July. If it persists yield will most certainly come down. In other words we are going to live or die with each forecast for the near term. We went into this report with a great concentration of spec shorts. They now have to be seriously reconsidering this position. If the upcoming holiday weekend is indeed hot & dry and forecasts suggest it will persist I have to think well see quite a rush to the topside.

So with all of this said the initial target could easily be the 200 day MA which comes into play at the $3.76 level basis the December contract.

Daily Support & Resistance 7/01

Sept Corn: $3.35 - $3.50 ($3.60)

Dec Corn $3.45- $3.60 ($3.70)

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.

LIKE JUST MY OPINION? QUESTIONS ABOUT THIS REPORT OR THE GRAIN MARKETS?

Contact me! Tom Fritz, Agricultural Market Analyst at 1.800.786.4475.

Learn more about International Futures Group at www.ifgfutures.com



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About the author


Tom Fritz is a third generation commodity futures trader. His grandfather and his father were traders on the exchange. Tom began his career in 1971 with Tabor Grain which was later acquired by Archer Daniels Midland. Prior to co-founding IFG in 1994 Tom was the lead Chicago Board of Trade floor analyst for ADM. He produces Just My Opinion, a daily grain commentary that is well respected and viewed all over the world.

 

 

Contributing author since 11/7/2017 

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