China Offers Corn Traders Some Hope
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.
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.
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