March Corn closed 2 ½ cents lower ($3.78 ¾), July 1 ½ cents lower ($3.89 ½) & Dec 1 ¼ cents lower ($3.89 ½)
February Chgo Ethanol closed unchanged ($1.340), March $0.004 cents per gallon higher ($1.354)
Weekly Corn Export Inspections – 562.3 K T. vs. 500-800 K T. expected
Weekly corn export inspections were deemed a bit disappointing vs. the recent improvement in export sales. Despite the lower price performance the recent trading range ideas ($3.75 to $3.95 March) continue to be honored. Speculation runs rampant as to how China is going to resolve its food/feed problems considering the restrictions on travel. One idea is that they would import corn into the southeast vs. transporting their own corn from the northeast as it would have to travel through coronavirus infected areas. The SA corn crop appears to be developing in fine form in both Brazil and Argentina. It seems soybean harvest is catching up to the point that the early stages of the second season corn crop planting is getting under way in Brazil.
Interior cash corn markets continue to show a steady to firm bias with one exception; the Ohio River is off 1 cent. The US producer remains a reluctant seller of his cash corn. The Gulf’s midday posting has it unchanged with the past couple of days. Despite what appears to be a relatively firm cash market corn spreads saw a bearish bias within the current crop year as well as the old crop vs. the new crop.
The idea that the corn market is a trading range market continues to hold true despite the lower flat price and the recent bear spreading. The so far uncontained coronavirus still has the trade approaching the corn market with a bearish bias as they remain fearful of the unknown as to how it will interrupt the global corn trade.
Daily Support & Resistance
March Corn – $3.75 – $3.83
July Corn – $3.86 – $3.94
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.