Heavy Rains Enough To Spark Corn?
Today’s Spotlight Market
Corn futures are trying to claw their way back from lower $3 levels, boosted by soggy conditions.? The colder, wet weather could delay the Corn harvest, opening to door to some spoilage.? Traders, however, must question whether the temporary weather conditions can make a lasting impact on prices.
Fundamentals
Friday?s USDA data could be seen as bullish for Corn and Wheat, while the Soybean outlook was seen as neutral.? The government agency estimated that Corn yields will be 174.2 bushels per acre, falling short of the market consensus.? This number is up 2.5 bushels per acre from the September report, but traders were looking for a half a bushel per acre more.? This number feels a bit conservative, given the fantastic growing conditions this year, and it would not be surprising to see this revised up closer to the 177 to 178 level at some point.? Total production is expected to be 14.475 billion bushels versus the analyst estimate of 14.500 billion bushels. Traders may want to monitor the weather in the near-term, as thunderstorms across the southern and eastern parts of the Corn Belt could delay harvest.
Technical Notes? -? View Today’s Chart
Turning to the chart, we see the December Corn contract forming what could turn out to be a near-term bottom at the beginning of the month. Prices have rallied since that point but have been reluctant to break through the 350 level.? The 50 day moving average comes in just below 350 and may also provide resistance. If prices are able to break through 350, the move above the 50 day moving average could provide an additional spark.
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