Markets were closed Monday but starting on Tuesday, July Chicago Board of Trade corn declined response to wheat’s decline and the increasing value of the dollar. There was a slight rally on Thursday but prices were down again on Friday. Support lies at $3.48 and resistance lies at $3.67. Funds are currently short a record 177,000 contracts so if there is even the slightest weather scare to start the buying we could see a pretty significant rally.
Kansas City July wheat declined this week as trade began to focus on the impacts on adequate moisture across wheat growing areas. A reduction in quality scare last week gave the market the nudge it needed to get the short positions to start covering, and cover they did. This week trade thinks that although there may be quality problems, there will still be a large number of bushel to be sold causing prices to drop and the gain from last week to be lost. Short term support lies at $4.97 while long term support lies at $4.85. Resistance is at $5.61.