Corn Market Recap - 6/6/2017

June 6, 2017 3:37PM CDT

July Corn finished up 4 1/4 at 377 1/4, 2 1/2 off the high and 6 up from the low.
September Corn closed up 4 1/4 at 385 1/2. This was 6 up from the low and 2 1/4 off the high.

The market saw choppy and two-sided trade early but traded sharply higher into the mid-day with December corn moving up to the highest level since March 7th. Ideas that a combination of lower acreage and below trend yield might tighten the ending stocks outlook considerably helped to support the strong gains. After little or no rain over the past 1-2 weeks, the dry forecast could spark a quick drawdown in topsoil moisture if more widespread rains do not develop. The 1-10 day forecast is mostly hot and dry. The 5-day models are very dry. Iowa is already 9% short in topsoil moisture and Minnesota 7%. Nebraska is 17% short to very short. South Dakota and North Dakota are 54% short to very short. For Friday's Supply/demand update, traders see US ending stocks at 2.085 billion bushels (1.985-2.200 billion range) as compared with 2.110 billion last month. If there are adjustments in acreage or yield, the report could be a bullish surprise. A jump in Brazilian production could be an offset. Consider buying December Corn on breaks with 413 and 447 as targets.

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

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.