As July ’24 corn rallied beyond the congestion range on the front-month continuous charts, it began showing signs of being overbought, suggesting potential resistance to higher prices. Although managed funds have covered a portion of their net short position, their remaining net short position could provide fuel for a more substantial upside move as we transition into the growing season. While obstacles persist for higher prices, weather is still a dominant feature, and seasonal tendencies remain positive.

• No new action is recommended for 2023 corn. Given the recent weakness in the July ’24 contract, and that we are at the time of year when the perception of any improving weather can move prices lower very quickly, we recently employed our Plan B stop strategy and recommended making additional sales. Although the technical picture could look better, weather remains a dominant factor and could still move prices back higher if conditions deteriorate. Therefore, we are currently targeting the 480 – 520 range versus July ’24 to make what will likely be our final sales recommendation for the 2023 crop.
• No new action is recommended for 2024 corn. After the Dec ’24 contract posted a bearish key reversal in mid-May, we implemented our Plan B stop strategy and advised making additional sales considering we are in the time of year when changes in weather, actual or perceived, can move the market swiftly in either direction. Also considering the volatility that this time of year can bring, our current strategy is to have several targets in place to provide both upside coverage as well as downside. While targeting 520 – 540 to recommend additional sales versus Dec ’24, we are targeting the 510 – 520 area to buy puts on any production that cannot be priced ahead of harvest. We are also targeting a close below 451 in Dec ’24 to buy upside calls for their value to protect any existing or future new crop sales.
• Grain Market Insider sees a continued opportunity to sell a portion of your anticipated 2025 corn production. We had been targeting a fill of the price gap between 502 ½ and 504 on the Dec ’25 futures to recommend making the first sale for the 2025 crop. When looking at this target area, we also set a calendar deadline which it needed to be hit by, as we know we need to utilize the opportunities the growing season presents to get early sales on the books. The deadline we set was by the June 4 close. If Dec ’25 did not fill that gap by that day’s close, then we would proceed with making a sales recommendation at the going market price. This Plan A (upside) / Plan B (calendar deadline) duo looks to capitalize on rally opportunities, while simultaneously making sure bushels get sold in case the market falls short of upside target areas. Therefore, Plan B has officially triggered so we are recommending today to get started with selling a portion of your 2025 production on an HTA contract so basis can be set at a later, more advantageous time. Grain Market Insider will likely have two more recommendations over the course of this growing season to get additional sales made for the 2025 crop.

To date, Grain Market Insider has issued the following corn recommendations: