Starting the week solid gains in corn and pressure on soybeans and KC wheat. Last week corn had its worst week since March 16th with a 15 ½¢ drop from improving crops and outside market forces. Losses accelerated with breakdown in technical picture as price moved through and below some major moving averages.
At 0600 CN20 trading 2 ½¢ higher at $3.19 ½¢ with SN20 off 2¢ at $8.63. KC wheat 1 ¼¢ lower at $4.20. Volume total so far this morning has corn at 56K and soybeans at 232K.
Dow futures 105 points higher at 25,054 this morning. Crude 13¢ higher at $38. 63.. US $ showing modest weakness this morning.
Last week corn moved below several moving averages and its up-trending channel lines sparking technical selling. Not uncommon for markets to retest those violated technical points.
USDA Acreage and stocks data tomorrow. Trade largely anticipating lower corn acres with more into soybeans. On the corn side hard to imagine a group of numbers that can change appreciably to alter the negative long-term price implications. Could however be an excuse for short covering?
Only lite rain totals expected for the next 7 days in much of Iowa, northeast IN and Ohio. Forecast trends drier in western and northeastern Midwest in the 15-day outlook.
Today all longs in July futures need to be closed out to avoid potential delivery implications although none are expected. No receipts of either registered as of this morning.
Weekly crop progresses this afternoon with corn expected to improve.
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