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Grain Spreads: Corn Demand SurgesPlease join me every Thursday at 3pm Central for a free grain and livestock webinar. We discuss supply demand weather and the charts. Sign Up Now Commentary Corn found spec buying after the market was tipped to some frontloaded buying by Mexico. This puts corn demand is in a much better position, with final demand likely higher than USDA’s target. The USDA announced a 360K flash sale to Mexico this morning for the current marketing year. This brings the 6-day total to 2.8 million metric tons of announced flash business to Mexico and Unknown destinations. The US crop continues to roll in as USDA reports 65% total progress vs 52% average on this week. Dry weather speeds along drying and leaves no impediment to cutting the crop. The dry weather does impede river logistics. More importantly we may be seeing the beginning of the re inflation trade moving forward as the Fed if they do anything most likely be in cut mode only. This could see fund managers covering remaining shorts for the time being, while farmers store as much corn as possible awaiting higher prices. We closed right at key resistance at 4.16/417. A close above this level this week and look for 424 to be challenged. A close above 424 and its 432 and 437. Support is down at 4.00 basis December corn, and with a close below, 393 and then 385.
Trade Ideas Futures-N/A Options- N/A Risk/Reward Futures-N/A Options-N/A If you would like to receive more information on the commodity markets, please use the link to join our email list Sign Up Now Sean Lusk Vice President Commercial Hedging Division Walsh Trading 312 957 8103 888 391 7894 toll free 312 256 0109 fax
Walsh Trading 311 S Wacker Drive Suite 540 Chicago, Il 60606 Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member. On the date of publication, Sean Lusk did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. |
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