Better Crop Weather Than Expected Could Spark Selling | RJO FuturesPosted 05/30/2017 10:06AM CT |
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