Corn conditions give market strengthPosted 07/18/2017 9:06AM CT |
December corn traded up to 402 this morning on conditions that continue to decline. The weekly corn conditions report showed 64% was rated good/excellent compared to 65% last week and 76% last year. The market was expecting to see a 1-2% decline Monday. The 10-year average for this time of year is 65%. At first glance, the conditions seem to have come in at the trade estimate but when you dig into the data, crops are deteriorating in the western belt quickly. Iowa’s G/EX went down 6%, Nebraska down 3%. North Dakota G/EX went down 7% and South Dakota down 7%. All four states poor/Very Poor rating went up 2%-10% range. There are rains forecasted in eastern Iowa, Southern Minnesota, Wisconsin, and Michigan over the next seven days with limited rains south of the line. One other interesting feature in Monday’s condition report is the eastern belt ratings compared to last year. Illinois is 62% compared to 76% last year, Indiana is 47% vs. 74% last year, Ohio is 54% vs 70% last year. December corn has seen a risk on trade after the conditions report yesterday. The trade fears continued deterioration this week in the west with triple digit hear and high overnight temps in areas in Nebraska, Iowa, Missouri. Support is seen at 395 followed by 392.
Dec ’17 Corn Daily Chart