March Corn closed 11 cents higher ($5.11 ½), July 11 ¼ cents higher ($5.10) & Dec 4 ½ cents higher ($4.34 ¾)
February Chgo Ethanol closed unchanged ($1.600), March unchanged ($1.575)
Weekly Corn Export Inspections – 1.391 M T. vs. 900 K – 1.150 M T. expected
The Sunday night trade brings us two-sided consolidation which featured new lows for the current sell-off. The day session brought us bargain buying with the rationale being a 49 cent correction since the January 13th high ($5.41 ½). Weekly corn export inspections furthered the intra-day rally as they exceeded expectations. It was a dry weekend for most of the Argentine corn crop. Forecasters do suggest better rains later this week.
The interior Midwestern corn basis appears to be stabilizing after last week’s sell off. River locations actually saw some minor improvement. A winter storm slated for the Midwest may have prompted some of that improvement. The Gulf basis continues to ease. Corn spreads were flat within the current crop year. Old crop reasserts itself vs. the new crop.
If March corn has made an interim top $5.15 – $5.20 represents resistance. Today’s high was $5.15 ½. Last week I was thinking that $5.00 – $4.95 would represent support. Sunday night we traded down to $4.92 ½ before rallying 23 cents. My bias for the near term is to see further attempts at consolidation between the $4.95 and $5.20 levels. If what we saw last week and Sunday night was just a correction cash markets (export in particular) and SA weather fears will have to lead us higher.
Daily & Resistance – 01/26
March Corn : $5.00 – $5.20
July Corn: $4.99 – $5.18
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