Surge in corn plantings now makes rain forecast lean bearish | RJO FuturesPosted 05/16/2017 9:55AM CT |
The short term trend remains down, as planting progress was better than expected late last week and over the weekend. Warm and dry weather helped producers catch up on planting progress. The weekly progress report showed that 71% of the crop is planted compared to 47% last week and 73% last year. Traders expected 68% complete. The 10 year average for this time of the year is 69%. The Western corn belt saw significant progress over the seven days with Iowa 85% vs. 52% last week, Minnesota 84% vs 35%, Nebraska 78% vs 48%, SD 77% vs 32%, ND 58% vs 23%, and Wisconsin 48% vs 15%. Illinois saw little progress. Indiana, Michigan, and Ohio are still behind their 5 year averages. With technological advances, the producer has shown they only need a small window to make major advances. Farmers will welcome the warmer temperatures in the short-term, while traders should still be aware of longer-term issues. Any weather scares moving forward can still force a short term rally from all of the fund managers that still hold a very large net short position. December corn support is at 380.
Dec ’17 Corn Daily Chart