Chicago Board of Trade Market News
Corn Market Perspectives: The rally in July corn back up over the $6/bushel threshold reflects that this is a weather market. The current forecast reinforces why weatherman wins few awards. What is known is that showers are currently isolated and too far west for the central and eastern growing regions. The cold front comes in tonight and will bring what is termed a more progressive pattern that generates more systems into next week and maybe the rest of June.
But the models are not definitive as to their coverage and significance, creating uncertainty. It could bring broad coverage with moderate amounts, or not. This change in pattern will be helpful but might not be enough to break the overly dry subsoil conditions. Today’s Drought Monitor indicated the dryness has intensified and is spreading broadly across the country. If the showers are widespread, the July corn contract will get knocked back down below $6/bushel once again.
But it is not all weather. Tomorrow’s USDA June WASDE report could hold a surprise or two, and then on Monday is the next Crop Progress report and it will no doubt reflect what the Drought Monitor is showing.
