After the weekend break, corn is roughly 8 cents off their overnight highs but still 2 to 4 cents higher into Monday’s day session. Corn posted double digit gains on Friday, settling just off the daily highs. Preliminary open interest confirmed short covering on Friday, dropping 2,096 contracts on the double digit rally. December was up 13 1/4 cents on the day and 19 1/4 cents for the week. July corn futures expired at $5.99 3/4 cents, a 93 1/4 cent premium to the now lead month Sep and leaving a huge expiration gap on the continuation chart.
There were 39 delivery notices against July corn as the contract expired, with Dreyfus stopping all of them.
The weekly CFTC data showed major selling from the spec shorts the week that ended 7/11. The 36k new shorts and 8.8k fewer longs extended managed money’s net short to 63k contracts. Commercial corn traders closed 51k shorts during the week, and were 160,533 contracts net short at the Tuesday close.
The northern half of the Corn Belt is expected to see less than half an inch of rain over the next 7 days per the QPF forecast. The NWS 8-14 day forecast extending to July 30 leans toward above normal temps west of Toledo, Ohio. The bias is normal rainfall for that period east of Chicago but leaning dry to the WCB.
Sep 23 Corn closed at $5.06 1/2, up 13 cents, currently up 4 1/4 cents
Nearby Cash was $5.52 1/4, up 14 cents,
Dec 23 Corn closed at $5.13 3/4, up 13 1/4 cents, currently up 4 cents
Mar 24 Corn closed at $5.25 1/2, up 13 1/2 cents, currently up 3 3/4 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
