Low end world ending stocks could result in biggest drawdown since 1988 in corn | RJO FuturesPosted 05/09/2017 10:52AM CT |
The market is probing for a short-term low as weather and more speculative selling helped to drive the market lower yesterday. The outlook for a sharp drop in world stocks and a small drop in US ending stocks for the coming year might be a good reason for the market to wait and see how the crop looks for the early growing season before moving much lower. A drier near-term forecast in the northwestern corn belt with good progress being seen in Minnesota, Iowa, and Dakotas over the next few days has pressured prices. The weekly progress updates showed corn plantings at 47% complete compared to 34% last week and 61% last year. The states of Iowa, South Dakota, North Dakota, and Minnesota are all behind year ago and five year averages, but all made solid planting progress last week. Illinois, Indiana, and Ohio had very little progress and some areas there are talks of needing to replant corn. The market is 13 cents off last Mondays high and the managed money traders only covered 11,627 contracts. The forecast is not as wet as feared late last week, but the fact remains there are several areas in the eastern corn belt that have started the growing season with some difficulty. Corn support for December is 381 with an objective of 413.