After an initial spurt to two-week highs, Corn futures lost their luster, as commercial selling and updated weather forecasts put bears in control. December Corn started the day session slightly higher, with forecasts of above-normal temperatures in the Midwest keeping traders concerned that crop conditions would continue to deteriorate. However, some private forecasts are now calling for increased precipitation in the parched regions of South Dakota and Minnesota going into the weekend, putting pressure on Corn futures. In addition, failure to hold above the widely-watched 20-day moving average in December Corn – currently at 3.42 ¾ – sparked some momentum-based selling. Resistance for December Corn is seen at the July 17th highs of $3.48 ½, with support at the recent lows of $3.24 ½. December Corn closed at $3.35 ¾, down 6 ½ cents a bushel.
After posting a record high of $78.77 for a nearby contract, September Crude Oil plunged over $2 at its lowest point of the session, despite a larger-than-expected drawdown of U.S. Crude stocks last week. In its weekly energy stocks report, the EIA reported that U.S. Oil inventories fell by 6.5 million barrels last week, down sharply from average forecasts calling for a decline of 700,000 barrels. Refineries ramped up production significantly, with utilization reported at 93.6% – well above estimates. Gasoline and Distillates both showed increases with gains of 600,000 and 2.8 million barrels, respectively. After the initial rally to a record high, Crude Oil futures were hit with a wave of selling, as traders booked profits with the expectation that refined product inventories should increase given the sharp rise in utilization. September Gasoline made another attempt to test the $2 level, falling as low as $2.0020 before buyers emerged and prices rebounded over 2 cents off the day’s lows. The 20-day moving average at $74.72 looks to be the next support point for September Crude, with today’s highs at $78.77 seen as resistance. September Crude Oil closed at $76.51, down $1.70.