Corn Report, 07/01/2016

Friday, July 01, 2016

The USDA came in and swung big with an increase off their March 31st acres report of 500K acres to 94.1mln acres. Now if you remember when they released the Mar number of 93.6 there was a lot of chatter of it being way to high, but this is a good example of low prices do not mean lower acres. But probably the biggest shaker was the 200mln bu increase in ending stocks. The trade was expecting a larger feed usage number but the USDA has revised to normal trend lines pushing the carryin for 16/17 up. Now the trade has its entire focus on weather, with the nearby weekend wetter, with large amounts for central plains, but the extended forecasts continue to show hot and dry conditions. Not expecting large fireworks today as most traders will be focused on the holiday weekend, but could see some volatility come back next week with the rains gone and the heat staring us in the face. The CN has support at $3.6525 and resistance at $4.0675.

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