Corn Commentary


Corn – Just My Opinion

May Corn closed 10 ¼ cents higher ($3.45 ½), July 9 ¼ cents higher ($3.51) & Dec 5 ½ cents higher ($3.63 ¼)

April Chgo Ethanol closed $0.065 cents a gallon higher ($1.017), May $0.070 higher ($1.042)

Weekly Corn Export Sales – 904.6 K T. old crop vs. 600 K – 1.200 M T. expected – 56.0 K T. new crop vs. 50-150 K T. expected

Crude oil rallies over $5.00 a barrel. Ethanol rallies 6 – 9 cents a gallon. Fears of exports halting at various ports in SA. Technically oversold. Equities are showing signs of trying to stabilize. Last but not least the rumor mill is citing some possible Chinese US corn purchases. All of this accounted for the near massive knee-jerk rally today. It was interesting to note that only half of the day’s gain was sustainable into the close. I don’t think weekly export sales had much to do with today’s rally as they came in mid-range of expectations

After yesterday’s interior basis break throughout the Midwest today’s basis quotes turned mixed. Some locations continued to break their basis while others ran steady and some actually saw some bumps higher. It is noted that many of the processing locations either maintained yesterday’s break or broke their basis even further. Bull spreads were hard at work trying to recoup recent losses.

Yesterday we talked bout $3.30 being rent years’ support for nearby corn. That was holding true today. Despite today’s sharp rally resistance that was established last week has yet to be tested. In July corn that first level of resistance comes in closer to $3.70 and today’s high was only $3.60. As we move forward in time energy prices, equity price action and potential export business will be monitored for price directional purposes. I say this in case today was just a knee jerk reaction.

Daily Support & Resistance – 3/20

July Corn – $3.42 – $3.60

Dec Corn – $3.56 – $3.70 

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