The September and December corn contracts were trading near 10 cents higher as of 7 am cst. Calendar spreads were mixed to slight weaker with the September vs. December spread trading unchanged at +6 the December contract. September Dalian corn traded up 0.16%. U.S. stocks are trading sharply higher while the U.S. Dollar is sinking after positive sentiment came out of the European Leaders Summit. The news threw the Euro sharply higher and commodities rebounded. The key number for the corn market for the USDA reports this morning is the June 1st stocks number. Traders will also be looking for any significant changes in the acreage. The trade expects June 1 stocks of near 3.18 billion bushels with range of estimates as wide as 670 million bushels. Last years stocks were 3.67 billion bushels. The markets will likely turn higher on any number less than 3 billion bushels. On the other hand, the markets will likely turn lower if stocks are reported over 3.35 billion bushels. In addition, the trade expects a slight increase in corn acreage near 96 million acres. Weather continues to be the main focus of the market and depending on the outcome of the report this morning; the trade will likely shift their focus back to counting rain drops by this afternoon. Blistering temperatures will be seen in the most of the Midwest today. Showers are still expected in the northern Corn Belt over the weekend and storm systems are stretching across the western third of Kansas to the eastern half of Nebraska this morning. The 1 to 5 day outlook is mixed with some models showing cooler temperatures and increased rainfall for 70% of the Corn Belt. Other models show that the rains are scattered with much of the thunderstorm activity staying in the northern third of Illinois and Indiana. With crops in the southern half of the belt pollinating in the next 10 day, a lack of rain in some areas could be devastating to yield.
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