Pre-Opening Corn Market Report for 5/15/2012

July corn was trading 6 cents higher late in the overnight session. Outside market forces looked slightly positive overnight as equity markets are higher. Deteriorating wheat conditions and a strong recovery from an oversold condition for soybeans helped to support a bounce in corn overnight. Sluggish export demand news, talk of cheaper corn available from South America, cheaper feedwheat and expectations of a bumper crop season ahead are all seen as negative forces. However, traders see the market as short-term oversold basis traditional technical indicators. The weekly Corn Planting report showed that 87% of the crop is planted compared to 71% last week and 56% last year. The 10 year average for this time of year is 72%. The highest percent complete was 89% in 2004. Emergence is at 56% as compared with 28% as the 5-year average. July corn closed slightly higher on the session yesterday with an inside trading session. Good weather in the forecast and the outlook for a record yield were seen as negative forces but talk of the oversold condition of the market after the sharp break last week helped to provide some underlying support. Weekly export inspections came in at 26.8 million bushels which was slightly below trade expectations and compares with 34.6 million bushels per week to reach the USDA projection. While none of the Midwest needs rain right now, traders see the southern Midwest as too dry in the 2-week outlook and if this forecast is correct, this region may be in need of wetter weather ahead and the dry outlook may have helped slow the selling. December corn closed slightly higher on the session but down 7 1/4 cents from the early peak.