Corn futures keep on showing strength to start the week of Aug. 25, Blue Line Futures said.
This occurred after the Aug. 22 final Pro Farmer Crop Tour yield estimate of 182.7, below the USDA’s forecasted 188.8.
“All through last week we talked about how what we saw was ‘underwhelming’ relative to expectations,†Blue Line Futures reported.
“With friendly technicals since the bearish WASDE report and a tailwind from the crop tour, prices are into our resistance pocket from $4.15¾ to $4.18 ¼. If the bulls can chew through and close above this pocket, things could get more exciting with $4.30¼ to $4.32¾ being the next significant upside target.â€
Analyst Jack Scoville of the Price Futures Group weighed in that “corn was higher on ideas that the Pro Farmer tour did not back up USDA yield projections.â€
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In particular, that view looks especially likely east of the Mississippi River.
“There still appeared to be speculative selling on widespread record crop production predictions based on additional forecasts for improving weather for the Midwest, but there was more short covering from speculators and commercial buying,†Scoville said. “Most of the Midwest has seen adequate or greater precipitation and production ideas are high.â€
Of course, bushel predictions as farmers get set for harvest could vary because of weather conditions.
As many more crops progress toward harvest soon, temperatures for Illinois, Iowa and Missouri are predicted to be likely below normal Aug. 30 through Sep. 3. For Sept. 2-8, rain probability leans above normal for about 75% of Iowa, the western edge of Illinois and nearly all of Missouri, the National Oceanic and Atmospheric Administration reported Aug. 25.
A sliver of western Missouri and about 25% of western Iowa leans even a little more toward above-average rain, NOAA reported.
Temperatures likely will remain normal for much of the three states for Sept. 2-8, NOAA reported.
