Chicago Board of Trade Market News
Outlook: The rally in July corn back up over the $6/bushel threshold reflects that this is a weather market. What is known is that showers are currently isolated and too far west for the central and eastern growing regions. The cold front comes in tonight and will bring a more progressive pattern that generates more systems into next week and maybe the rest of June. But the models are not definitive as to their coverage and significance, creating uncertainty on whether there will be broad coverage with moderate amounts. This change in pattern will be helpful but might not be enough to break the overly dry subsoil conditions. Today’s Drought Monitor indicated the dryness has intensified and is spreading broadly across the country. If the showers are widespread, the July corn contract will get knocked back down below $6/bushel once again.
Tomorrow’s USDA June WASDE report could hold a surprise or two, and then on Monday is the next Crop Progress report and it will no doubt reflect what the Drought Monitor is showing.
