Corn Report, 07/27/2016

Wednesday, July 27, 2016

We saw our 3 trading day of range bound trade as corn only had a 6 cent range after hitting a high of $3.4350 and settling the day at $3.3950. The funds where again an estimated net even as heavy downside pressure remains, but see strong cash push from the gulf as export demand is strong. This market seems to be fighting that thought of large supply with the thought of a record demand, but which one will materialize? Models showing heat coming back next week as of right now, but with the rains expected the end of this week and rolling into next and almost all the crop past pollination it seems to bring little effect just yet. China corn reserve sales that were talked about earlier this spring have been much lower than expected as quality is an issue, and you have plentiful cheap world corn. Could see a bounce off a large bean rally as the heat hits the beans as poding begins, but the trade seems content staying range bound until we get a better idea of Aug weather and what private yield estimates bring. Looking for a steady day, chance of testing resistance level or passing it if beans rally. CZ has support at $3.36 and resistance at $3.47.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial