Cold and wet weather looks to continue for the next two weeks throughout the Midwest, so the market may continue to see active buying moving forward in the short term. Even a record yield of 177 bushels per acre would bring ending stocks down to 1.56 billion bushels and bring the stock/usage ratio down to 10.5% from 14.4% in 2017/18. On Friday, July corn was down 1 cent on the day and finished the week ¾ of a penny higher. Major support is being seen from the cold weather mixed with snow in the Midwest. Soil temperatures down 4 inches are still being seen in the upper 20’s to lower 30’s which will definitely cause delays if there is no warm up soon. There is also concerns that when we do begin to warm up, it will be followed by rain that can cause even more issues. Farmers ideally want to have 40% of their corn planted by the third week of April, but this seems highly unlikely this year.
The next area of resistance is around 392 and 395, with support coming in at 384 and 379.
Corn Jul ’18 Daily Chart