Corn Futures are currently trading within a micro-balanced price range, positioned below the Year’s developing value area. Notably, there appears to be buying interest around the Quarter’s and Month’s lower value extremes, as traders lean on these levels for potential price rotations.

From the VWAP perspective, the market exhibits an imbalance to the downside, and currently, there is some selling activity around the upper extreme of the daily interval’s balanced price range.
 

Downside imbalanced VWAP structure with rotational behavior around lower extreme.

It’s plausible that the market is setting up for a pullback, offering core buyers an opportunity to reload on positions. Opened long positions might also be targeting the swing highs and the Quarter’s developing VWAP, depending on the outcome of the next day’s auction process.

The intense heat in the US corn belt during the harvest season limited yields, potentially leading to a shortfall in supply. These weather-induced concerns prompted agricultural funds to increase their purchasing activity in the corn market.

The heat also caused the water levels of the Mississippi River to drop to precarious levels. This development raises worries about hindrances in transporting corn to export terminals located in the Gulf of Mexico.

Positive supply dynamics have emerged from South America, significantly contributing to the global supply of the commodity. According to reports, indications suggest that Brazil’s corn output is set to increase by approximately 16%, positioning the country as the largest exporter of corn.

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