As the first delivery date looms, speculators jumped out of the July market sending futures prices spiraling down.
Brian Basting with Advanced Trading says there was a tremendous liquidation in the July corn contract. "It's hard to believe but just 2 weeks ago, July reached almost $8/bu. and this week it declined all the way under $6.30/bu. briefly only to close the week at $6.70"
The reason for the decline? "Speculators that had been long on July futures were liquidating as the delivery date of June 30 moves closer," says Basting.
Next week, attention turns to the June 30, 2011, USDA Acreage Report and the Grain Stocks Report. But improving weather conditions and outlook should be positive for the market.
Listen to the full AgWeb audio report here.