Corn Commentary


Corn – Just My Opinion

May Corn closed ½ cent higher ($3.19 ¼), July ½ cent lower ($3.26 ¼) & Dec 1 ¾ cents lower ($3.41)

May Chgo Ethanol closed $0.005 cents a gallon higher ($0.952), June $0.005 cents higher ($0.975)

Weekly Corn Export Sales – 906.6 K T. old crop vs. 600 K – 1.200 M T. expected – 62.9 K T. new crop vs. 150-350 K T. expected

Not much of a trade in old crop corn today, barely a 5 cent range. Weekly export sales were no big deal. I’m told Argentina is getting competitive with US origination. No new news from the ethanol sector as it remains on the skids. I continue to hear of more livestock processing plants slowing down if not shutting down. New crop sees the greatest losses on the day as it looks like in the days ahead planting could start in earnest.

The interior corn basis has the processor that is still up and running standing in with his basis. Cedar Rapids is maintaining yesterday’s 2 cent push. River locations, however, are easing as they are attracting corn that would have normally gone to the processor. Corn that normally would have gone to the processor is being shifted to locations that are involved with export. The easier looking Gulf basis is reflecting this. Despite this corn spreads showed a firmer bias as the spec trade focused on the new crop as it looks like we could see a fair advance in planting in the days ahead (once tonight’s snow event passes through).

Corn charts look ugly – I’m not sure much more needs to be said. Watch the weekly close in May corn – $3.16 ½ is the lowest for the past number of years.

Daily Support & Resistance – 4/17

July Corn – $3.23 – $3.31

Dec Corn – $3.38 – $3.44 

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.