December Corn Nearing Major Support Area, Getting Oversold
The market is getting oversold and the majority of planting and the entire growing season is ahead. If the Ukraine safe grain export corridor is not renewed in three weeks, that should be a positive for U.S. corn sales. The downside is, assuming weather stays beneficial in Brazil, they could have a record-large crop to market. However, there is a long way to go for that crop to be realized. The $5.42 area on December corn should support the market, but a solid close under that area could lead to another leg down.KANSAS CITY JULY FUTURES:
As in the case of new-crop corn, new-crop Kansas City July wheat has also been in a downdraft. A lower close Monday would be the fifth consecutive lower finish. The momentum indicators are also getting oversold on wheat, but the only real support for July is another 19 cents lower at $8.00. We should see KC July wheat pause in that area, if not rebound from it. Expectations are that Monday's USDA Crop Progress report will still show a historically poor rating for hard red winter wheat, with incoming rains this week likely much too little and far too late.
Comments above are for educational purposes only and are not meant as specific trade recommendations. The buying and selling of grain or grain futures or options involve substantial risk and are not suitable for everyone.
Dana Mantini can be reached at Dana.Mantini@DTN.com
Follow him on Twitter @mantini_r
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