Corn futures rose slightly in the North American session, the commodity was sent to Mexico as the top international destination. Although shipments to China have slowed, they still totaled 2.6 million bushels, one of the highest weekly export volumes. Despite this uptick China still remains sluggish with purchases that were agreed to with Phase 1 commitments. It should also be noted that the lack of significant weather has been seen as a bearish force for the corn market. According to recent data, traders are holding over 300,000 net short contracts. The downside will be limited until there is more certainty with reports on upcoming crops. Eventually, traders will be watching to see if the higher prices in china could help support U.S. prices if there is more active buying.
July corn has been in an overall uptrend making higher highs and higher lows within the price action of the contract. The contract has significant support at the $322 level as well as the $325 level. The contract will need to hold these levels to see another leg higher and re-test of the $333 resistance. A break of this level may spark some short covering and a test of $335 may be next up.