Corn Report, 06/29/2016

Wednesday, June 29, 2016

We saw corn get a nice pop up yesterday touching a high of $4.0675 with strength from beans rallying hard lowered ratings and talk of less acres, before hitting a small sell off and settling the day at $3.9425. CZ has now closed unchanged for the past 3 sessions, which is right on the 100MA trend line, with the weather volatility and acres/stocks reports this could either be our spring board up or our cliff we jump off. The main market risk remains in the weather, as every report seems to bring a reaction out of the market, you add a couple more or less million acres on tomorrows report and the extended holiday weekend is making for an interesting next week. My gut feeling is telling me we will see acres around 92-92.5mln, which would weigh heavy on any nearby weather rally, but if acres are lower and with hotter extended forecasts we could see some heavy volatility. The USD is down 913 points after its 2 day Brexit rally which lends some support, but demand has weakened a bit with Brazil harvest, very cheap feed wheat domestically but did see Gulf corn basis up 10 overnight. CN has support at $3.7350 then resistance at $3.9825, with sideways trading to some weakness ahead of tomorrow’s report.

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