Better Crop Weather Than Expected Could Spark Selling | RJO Futures

May 30, 2017 10:06AM CDT

The weekend rains were much lighter than expected, and this hit corn more than the other grains. After recent hefty rain totals, several more days of dry weather should help the crop get off to a good start in most areas. Parts of southern Illinois and Indiana have had too much rain, and concerns could pick up later this week as 1.5 to 4.3 inches of rain are expected in the 7 day forecast for the southern and Eastern Midwest areas. July corn traded higher Friday and managed to gain 1 ¾ cents for the week. Strength was seen from short covering into the long weekend with problematic rains in the forecast. Replanting still looks to be significant, but perhaps much less so if producers can be active early this week. The weather is slightly less threatening than expected, with drier forecasts over the next several days to help advance plantings. There is still a cooler and wetter pattern for another week or more in the Eastern corn belt, but traders may show above normal temperatures emerging into the second week of June. The point is that the crop is off to a better start than expected. Key support comes in at 386 then 381 for Dec corn.


Dec '17 Corn Daily Chart

Dec '17 Corn Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be 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 judgement 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.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures 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 with registration, the market commentary in this communication should not be considered a solicitation.