Corn futures prices for July climbed to $5

Corn futures prices for July climbed to $5.07 amid stronger-than-expected weekly export sales. Analysts see technical resistance near $5.10, which if breached could trigger algorithmic buy programs. The soy complex futures markets last week were hit by news that around 40 cargoes of Argentine soybeans were registered for export in November and December during the export tax suspension, mostly headed to China. However, it is important to note China typically buys around 90% of Argentina’s soybean exports. Total bookings so far still do not stray far from what is considered normal for Argentine exports. So, while Argentine soybean export sales increased markedly last week, total exports may not stray far from what was expected prior to the tax cut. China has shown a robust appetite for soybeans. While Argentina will supply short-term needs, global demand for soybeans will continue to grow and a tight U.S. balance sheet will persist. That’s a bullish longer-term element for the soybean markets. Weather has also been mostly favorable across the corn belt. On May 27 th , the USDA estimated that 5% of corn production was in severe drought or worse, indicating most of the major production areas had average to favorable soil moisture conditions. This can change rapidly and in the recent past many states have experienced flash droughts that have reduced state level yield estimates later in the growing season. The May 31 st 30-day NOAA precipitation forecast indicates average to above average precipitation for the corn belt, the Mississippi river portal and the southern seaboard. Corn futures prices traded up to $5.04 on Thursday, with open interest climbing sharply, suggesting fresh money entering the market. Weather premium is being built in as meteorologists predict limited rainfall in key growing areas.