July Corn closed 1 ¾ cents lower ($3.17 ¾), Sept 1 ¼ cents lower ($3.23) & Dec 1 cent lower ($3.33)
June Chgo Ethanol closed $0.016 cents per gallon lower ($1.109), July $0.012 cents lower ($1.069)
Weekly Corn Export Sales – 884.2 K T. old crop vs. 500 K – 1.000 M T. expected – -29.3 K T. new crop vs. 200-400 K T. expected
The recent range bound trade continues for both old crop and new crop corn. As far as I’m concerned weekly corn export sales were no big deal. I’ll dismiss the negative new cop sales number as we are running 1.3 M T. ahead of last year’s new crop sales pace. I think the bigger feature here is the prospect of non-threatening growing conditions as we move into the month of June.
For the first time in quite some time Midwestern river locations (corn basis) traded in unison – they were all lower. The only better basis I saw came out of Lincoln, NE. The Gulf is easing from recent strength. Bids are down 6 cents, offers down 4 cents at the midday posting from what was seen Tuesday night. Old crop continues to lose to the new crop. Some of the fear behind the faltering nearby spreads is that once we move into June a good portion of the Illinois River will be shut down for the summer due to locks repairs at various locations.
Old crop corn charts are looking perilously close to breaking down. July corn closing below $3.14 may attract further selling. Dec corn closing below $3.30 is not going to be taken too well.
Daily Support & Resistance – 5/22
July Corn: $3.14 – $3.22
Dec Corn $3.30 – $3.36
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.