Morning Market Review by Bryce Knorr
Futures are trading lower across the board this morning, with liquidation amplified by a risk-off tone from outside markets.
Corn remains in its week-long range, trading both sides of unchanged overnight. Though corn has shown some resilience to the selling in soybeans, another week of harvest pressure could bring a serious test of the potential bear flag developing on a break below $7.39 December.
Futures closed with a modest inside day higher on Friday but lost ground for the week. This afternoon’s Crop Progress report could show 35% to 40% of the crop harvested, with weekend storms mostly limited to southern Wisconsin and Michigan into northern Ohio. Producers in the northern half of the Corn Belt should have mostly clear weather this week.
Demand concerns continue to overhang the market, after a slow week of export sales. South Korea bought 2.6 million bushels of optional origin corn in a tender for up to 5.5 million bushels, but rejected offers for 2.6 million bushels of feed wheat, in an indication the corn/wheat spread may have gotten out of line after rallying to a 19-month high in Chicago.