After failing to make new highs last week, the corn market appears ready to come under pressure as the second half of June approaches. How much pressure likely depends on outside markets as much as it does corn market fundamentals.
With the crop up and growing, there's little direct news for corn to move traders one way or the other. A big improvement in crop ratings might spark additional liquidation, but July futures are likely to find support around $4 to $4.10. Long-term, end users appear to accept USDA's projections that supplies will tighten into 2009. So breaks should spark at least some buying interest until it's clear the 2009 crop is safe from harm.
With crop development so delayed, that judgment will take time, lots of it. That could make corn a great place for short-term traders, while at the same time keeping investor money on the sidelines.
To read Bryce Knorr's complete weekly corn review, click HERE.
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