Closing sharply higher off a bearish USDA report is a bullish development, it will not take much in the way of weather problems to spark further rallies. After dealing with flooding and too much rain during planting, farmers are now seeing extreme heat with zero precipitation in certain areas, and this is going to be a big issue. The eastern corn belt still has some rain in their 6-10 day, but Iowa is now going to run into issues after avoiding the flooding during planting. 10-straight days over 90 degrees with minimal rain and a shallow root system, the crop could see some stress going into pollination. Don’t forget, the USDA is also re-surveying 14 states about planted acreage which will be included in August report. This should add more support to the corn market. Close in buying support for Dec corn is 440. Resistance comes in today at 453 (which has been broken before I was able to publish this article), which could leave 490+ as a new target.
Corn Dec ’19 Daily Chart