Weather is still the story. This season was off to a bumpy start after heavy rain falls have caused more than usual replanting. Condition ratings came in better (68%) this week, but still behind the average for this time of the year. It seems as if the crop is getting better. Now the pendulum is swinging to the other side as the trade is getting concerned about the growing areas starting to dry out, along with increasing temperatures. Temperatures at the moment can be considered both a positive and a negative. The dryness will allow the areas not planted to be done, but if little or no moisture occurs, the seed will not germinate.
According to the latest commitment of traders report, the funds are still short. With plenty of time until the corn is harvested, the market will be very attuned to any weather issues. It’s very hard to be short with the uncertainty of the growing season. At this time it looks as if breaks should be considered. With weather markets, one has to be very nimble.
Dec ’17 Corn Daily Chart