March Corn closed 3 ½ cents lower ($3.62 ½), July 3 ½ cents lower ($3.81) & Dec 2 ¼ cents lower ($3.95)
April Chgo Ethanol Closed $0.004 cents a gallon lower ($1.344) & May $0.006 cents lower ($1.357)
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)
Weekly Corn Export Sales – Old Crop vs. 700 K – 1.100 M T. expected – New Crop – 100-300 K T. expected
It was not a very encouraging day for those that are thinking the corn market made an interim low last week. I did not see any news of note to prompt the poor looking price action other than the continued lack of market making demand. I have to think the corn market was weighed down by the wheat and soybean markets getting whacked. Weekly export sales are due out in the morning and not much is expected. As much as I think the spec trade is too short going into the planting season we have seen little to challenge that mentality. Concerns over the possibility of a slow start to the planting season are just that; only concerns. Talk to me at the end of the month to see if we still have those concerns.
From what was a mixed looking interior cash market on Tuesday is a steady firmer cash market on Wednesday. Any recent easing from the processor is has now steadied if not a bit better. Interior River markets have steadied up as well if not a bit better at selected locations. The Gulf runs steady with last night’s posting. Corn spreads had a steady to bearish bias in lieu of the flat price selling.
For as feeble as the corn trade looked today the suggested reversal of last Friday continues to provide underlying support. Just how long this lasts if the soybean and wheat markets continue to move south remains to be seen.
Daily Support & Resistance for 03/07
July Corn: $3.76 – $3.85 Dec Corn: $3.90 – $3.99
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.