December corn is coming off resistance at 387 ¾ with positive demand news or poor weather needed for a move higher following the bearish USDA report of higher expected stocks and planting intentions. Wet weather is expected throughout most of the growing regions over the next week with cooler temperatures in the Midwest. Fieldwork delay concerns remain for parts of the South and Midwest through late April, which could provide underlying support. Regarding the USDA supply/demand update (ahead of tomorrow’s report), ending stocks are seen near 1.991 billion bushels compared with the March estimate of 1.835 billion bushels. The COT report for the week ending April 2nd showed a new short of 246,735 contracts, which is not far from the record net short of 261,326. Contracts. With a near record short position as well as wet weather expected in parts of Nebraska, South Dakota, Northern Iowa and Minnesota through next week, look for the market to turn the minor trend up. Resistance for December corn is seen around 393 ½ and 395 ½ respectively.
Corn Dec ’19 Daily Chart