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Commentary
Corn found spec buying after the market was tipped to some frontloaded buying by Mexico. This puts corn demand is in a much better position, with final demand likely higher than USDA’s target. The USDA announced a 360K flash sale to Mexico this morning for the current marketing year. This brings the 6-day total to 2.8 million metric tons of announced flash business to Mexico and Unknown destinations. The US crop continues to roll in as USDA reports 65% total progress vs 52% average on this week. Dry weather speeds along drying and leaves no impediment to cutting the crop. The dry weather does impede river logistics. More importantly we may be seeing the beginning of the re inflation trade moving forward as the Fed if they do anything most likely be in cut mode only. This could see fund managers covering remaining shorts for the time being, while farmers store as much corn as possible awaiting higher prices. We closed right at key resistance at 4.16/417. A close above this level this week and look for 424 to be challenged. A close above 424 and its 432 and 437. Support is down at 4.00 basis December corn, and with a close below, 393 and then 385.
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Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
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