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Traders Remain Nervous About U.S. Planting Activity
Another round of moderate selling pushed corn lower, once again, as the forecast maps continue to look clear for planting in most Midwestern areas.
This morning showed a 10-day outlook where most Midwest areas remain dry. The noon maps looked virtually the same, except for adding light rains for Indiana and Ohio. While Monday’s planting progress might be a bit behind pace, the forecast currently suggests there is no reason to expect it to fall to a highly concerning level.
On the July corn chart, the downside opened up after taking out first support leaving only two levels worth talking about. First is the four-month uptrend line which crosses at $3.83½ per bushel. Following that is the area that acted as strong support in late March and early April in the very low $3.80s. In that time of support, the lowest level seen in July (except for the one-day tariff scare) was $3.80½. Corn traders should expect a continued reaction to weather map updates and not expect any major movements.
Traders continue to show some concern about planting pace, but we haven’t seen highly active buying or selling on updates. Short term, we will see what the Sunday night maps offer for influence on corn planting pace and possibly some more selling to chart support levels. Longer term, even if corn planting stays on the five-year average, there is enough news on the demand side to continue support.
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