March Corn closed ½ cent lower ($3.89), July ½ cent lower ($4.02 ¼) & Dec ½ cent lower ($4.04 ¼)
February Chgo ethanol closed $0.007 cents a gallon lower ($1.355), March $0.007 cents higher ($1.375)
It was not a very energetic corn trade on Tuesday. Old crop corn struggled to give us a 2-2 ¼ cent range while the new crop could not even give us a 2 cent range. The rationale behind the lackluster trade is the “wait & see” attitude ahead of the scheduled signing of the US/China trade accord slated for tomorrow (or shortly thereafter). Everything I read suggests we will not see specific details of what China will buy but just rather general dollar amounts targeting the different trade sectors.
Most interior corn basis levels continue to stand in. Processors continue to show the strongest basis levels. The Gulf also manages to stand in at recent levels. Corn spreads ran fractionally mixed on the day, almost as lackluster as the performance in the flat price.
Can/will the administration give us anything tomorrow to boost corn prices further? It will be the devil in the details or lack thereof. $3.95 (March) begins formidable resistance.
Daily Support & Resistance for Jan 15th
March Corn: $3.85 – $3.92 ($3.95)
July Corn: $3.98 – $4.05 ($4.08)
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.