Futures Roundup

---

China Offers Corn Traders Some Hope

   Fundamentals
Corn futures got a bit of a boost from indications that China is increasing its imports of the grain. There were purchases of 1.28 million tons of Corn for export this week, including 600,000 tons marked for export to "unknown destinations."

Many expect that this grain is headed for China. China may have purchased a total of 2 million tons of new crop Corn since last week. Strong demand from China was expected coming into the crop year, and this recent wave of buying hardly inspired bulls, but did help stabilize prices.

In the US, the new crop is progressing without issue due to fairly ideal growing conditions. There is some minor concern that a potentially colder and wetter weather pattern could disrupt planting progress. Given how well early plantings have progressed, the impact of the weather should be minimal.

   Technical Notes
Turning to the chart, we see the July Corn contract consolidating just north of the 600 support level. The 600.00 mark can be seen as more of a psychological support level, as more significant chart support comes in at 575.00. The consolidation with a preceding down move hints that more downside is possible. The RSI is giving an oversold reading, which could be supportive of prices.
  
  
   CLICK HERE FOR THE FULL-SIZED CHART



------------------------------------------------------------------------------

Note: The material presented in this commentary is provided forinformational purposes only and is based upon information that isconsidered to be reliable. However, neither Interactive Brokers LLC norits affiliates warrant its completeness, accuracy or adequacy and itshould not be relied upon as such. Neither IB nor its affiliates areresponsible for any errors or omissions or for results obtained from theuse of this information. Past performance is not necessarily indicativeof future results.

This material is not intended as an offer or solicitation for thepurchase or sale of any security or other financial instrument.Securities or other financial instruments mentioned in this material arenot suitable for all investors. Any opinions expressed herein are givenin good faith, are subject to change without notice, and are onlycorrect as of the stated date of their issue. The information containedherein does not constitute advice on the tax consequences of making anyparticular investment decision. This material does not take into accountyour particular investment objectives, financial situations or needsand is not intended as a recommendation to you of any particularsecurities, financial instruments or strategies. Before investing, youshould consider whether it is suitable for your particular circumstancesand, as necessary, seek professional advice. 



"

---

View Mike Zarembski's post archive >