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.
This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Allendale Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.