7/7/2022
Jul 07, 2022
A healthy corrective bounce back in the green with corn and soybeans still in severely oversold conditions. The September 22-May 23 corn contracts filled their respective gaps left on the chart from Tuesday's 8:30am hard open. The gap fill was quickly sold off, session highs were set, and December corn spent the rest of the day working to get back to the 600'0 level. Soybeans have yet to fill any of the gap area overhead. Weekly ethanol data showed producers down 7,000 barrels/day from the previous week to 1.044 mln bpd. Ethanol stocks grew 744k barrels to 23.49 million barrels. Weekly export sales data is usually released on Thursdays but is delayed until Friday this week due to the July 4th holiday on Monday. Extended weather forecasts have been favoring warm and dry weather for the second half of July providing some support to the market going forward. With corn pollination and tasseling coming quickly, the next few weeks will be the most important in determining market direction. Big up-side in the market is still possible and conditions in Brazil have yet to be factored in for their first crop. Overall, demand has been sluggish as of late with export sales virtually at zero and end-users only buying what they need when they need it.
