06/24/2016 8:04:39 AM
Happy Friday... darn Brits
Commodity markets are sharply lower following the surprise result of the Britain vote to leave the EU. Equity markets collapsed overnight with US dollar screaming higher on a flight to safe assets. British pound lost over 10% and hit 35 year low vs US dollar. Energies also sharply under pressure.
July corn blew through 3.85 support line overnight. Next level of support is 3.68ish on July corn. What happens between now and June 30?
Would expect spec funds to continue liquidating long positions/ take risk off the table in light of today's action and with US weather forecast not seeing any extreme heat the next 10 days. The maps are drier but most are concerned about temps and the northwestern flow should keep temps moderate for pollination short term.
Basis levels are firming in response to the sharply lower board (corn & bean basis) as producers cut off any selling until we get past the June 30th report.
Corn spreads narrowing as a result with the order flow out of the Dec contract.
In other news S. Korea passed on its tender for 55k tons of corn last night. French crop ratings for corn fell from 75% G/E to 69%.