Corn Commentary


Corn – Just My Opinion

May Corn closed 1 ¼ cents higher ($3.48 ½), July 1 ½ cents higher ($3.53 ½) & Dec 2 cents higher ($3.67 ¼)

April Chgo Ethanol closed $0.011 cents a gallon higher ($0.908), May $0.011 higher ($0.933)

USDA announces 138.0 K T. of old crop corn sold to unknown

Weekly Ethanol Grind – 1.005 million bpd vs. 1.035 million week ago – Stocks – 24.1 million bbls vs. 24.6 million week ago

Weekly Corn Export Sales – old crop vs. 900 K – 1.800 M T. expected – new crop vs. 0-100 K T. expected

Flat price corn finds support from the USDA announcement of two cargoes sold to unknown as well as the rumor that China may have bought 250 K T. in recent days. Surging wheat prices help while sagging soybeans and soybean meal offset. A stabilizing energy market was also viewed as a positive. He weekly ethanol grind showed signs of receding while more is expected in the coming weeks. Next week the USDA will give us Quarterly Stocks & Prospection Plantings; big numbers are expected for both categories.

Interior cash corn markets, especially the processor, remain clearly on the defensive. The Gulf however continues to edge higher. I have to think that is a result of slow movement. Corn spreads ran fractionally easier from month to month.

The technical look has corn prices going into a consolidation phase just above the recent low. Over the past few days we are looking at higher lows and lower highs. Normally triangulation efforts will break out in the direction of the underlying trend.  I have to think selling will accelerate if we take out yesterday’s lows; $3.44 in July and $3.59 in Dec. Immediate resistance levels are still $3.60 for July and $3.71 for Dec.

Daily Support & Resistance – 3/26

July Corn – $3.47 – $3.59

Dec Corn – $3.62 – $3.71 

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.