Chicago Board of Trade Market News
Outlook: Momentum is positive and the moving average continues in a bullish direction. The funds are now long approximately 70,000 corn contracts. They notably and literally bought into the bullish trend long before the commercial side of the market. Perhaps weighed down more by prior market experience, the commercials did not give the short supply situation in Brazil and the export prospects of the U.S. the same credence as the funds. U.S. exports have benefited as Argentina has failed to deliver its crop from the farms to the ships that have long been waiting. (Note that the next U.S. Export Sales report will be issued on June 3.) The respectable level of export sales will not change the expected carryout tremendously, but the direction is nonetheless bullish.
U.S. weather continues to be suboptimal with late sprouting in the eastern Corn Belt, and the Midwest overall is looking at below normal precipitation for the next 10-14 days.
Things are even more bullish in Brazil where the short supply has sent the national average price to R$53/60kg ($6.27/bushel).