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Demand and Lower Acreage Could Spark Corn Market
Corn continued a technical setback which was made easier with both the wheat and beans lower today.
Once again, as soon as July moved to or under $3.95 per bushel there was large support found in this market, showing the eagerness of buyers to step in on even a small pullback.
Each 1/4 penny lower had 2,000 or more buy orders, showing just how many buyers there were on today's small setback. Some of the support could have been in anticipation that next week will start to add even more support to this market, if weather forecasts remain cool/wet.
Buyers don't need a cool/wet forecast to see corn work back higher, strong demand and low acres should offer plenty of reason to see the grind higher continue.
If there is a poor planting forecast next week, it could accelerate a bounce. This is why some buyers were eager to get bought today. Short term, corn could start to be more influenced by weather next week, so we will want to keep a close eye on that Midwest forecast.
Longer term, the continued strong demand should keep a slow grind higher going in corn, whether there is a weather scare next week or not.
- Major buying support was seen again today at each 1/4 penny under 395
- Bulls will be looking for a wet/cold forecast next week to accelerate a corn bounce
- If the forecast is clear next week a continued bean setback could cause corn to approach 388 3/4 chart support
- Short term sellers will want to watch the HRW forecast as well to see if KC wheat offers more spill over pressure to corn like seen today