March Corn closed 1 cent higher ($3.66), July 1 ¼ cents higher ($3.84 ½) & Dec 1 ½ cents higher ($3.97)
March Chgo Ethanol expired $0.007 cents a gallon lower ($1.335) & April closed $0.002 cents lower ($1.350)
Average Trade Guesstimate for Friday’s USDA Corn Carryout Projection – US – 1.736 billion bu. (last month 1.735) – World – 309.06 M T. (last month 309.78)
It was a quiet slightly firmer day for corn trading; just a 3 ½ cent range. New demand news remains slight. Spring weather forecasts are creeping into the everyday conversations. In many areas of the Midwest and the south it will be a slow start to planting. The South and Mid-South is being constantly plagued with excessive moisture. Areas of the Midwest are staying cold along with additional moisture for areas that are dealing with near record (if not record) snowpack. As I mentioned demand news remains slight as the trade appears to be dismissing the recent rhetoric around the China/US trade talks as to how well they are going. It’s gotten to the point where the trade wants to see the business that’s being mentioned vs. just talking about it.
Interior cash corn markets have a mixed look to them on Tuesday. Selected processor markets appear to be easing while others are stay ing firm. River bids appear to be bouncing back a bit. The Gulf looks steady at best after easing from early last week’s strength. Corn spreads ran fractionally weaker on the day all the way out to the new crop.
The technical look has the corn market continuing to honor last Friday’s technical reversal. Resistance, however, has to be tested. Without new demand news the $3.80-$3.85 should prove to be a formidable hurdle for the May contract. Not much is being expected for Friday’s supply-demand update, both US and World. SA corn production, expected to stay firm, will be/could be a market maker.
Daily Support & Resistance for 03/06
July Corn: $3.81 – $3.89 Dec Corn: $3.94 – $4.02
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.