Ahead of the official July 12 reports data from USDA, it’s too early to say whether the recent rally in corn prices might be extended. But depending on those figures, along with closing prices at the end of the week, historical numbers suggest corn could move even higher, argues Dan Hueber, author of “The Hueber Report” blog on AgWeb.com.
“The current level that December corn is flirting with is quite critical,” Hueber says. “Not only did we poke up to the highest level traded for a December contract in just over a year this week, the $4.10 level has been very pivotal reaching back at least to late 2014.”
Below that mark, he continues, “prices have failed to recover until a low has been set.” But if the contract closes above $4.10 on Friday, July 14, “it would appear we have the stage set” for a move up to as much as $4.50, Hueber says.
“Could we even move further than that? Of course, Mother Nature holds the keys to unlock the chest that contains that answer, but if we did see December futures close consecutively above $4.54, I believe we would witness a rapid trip to the $5.10/$5.20 zone,” Hueber writes.
Speaking of weather, writes AgWeb.com blogger Kevin McNew of Grain Hedge, pay attention to the forecast for core growing regions in the central Corn Belt and Upper Midwest. There, persistent dryness could challenge crops with temperatures exceeding 100 degrees in places.
Crop conditions are falling for corn, soybeans and spring wheat in light of those circumstances, adds Paul Georgy, president and CEO of Allendale and an AgWeb.com blogger.