March Corn closed 2 ½ cents higher ($4.40), July 2 ½ cents higher ($4.42 ¼) & Dec 1 ½ cents higher ($4.20)
Jan Chgo Ethanol closed $0.005 cents a gallon higher ($1.325), Feb $0.005 cents higher ($1.335)
Weekly Corn Export Inspections – 762.9 K T. vs. 750 K – 1.100 M T. expected
It was a relatively volatile Sunday night session; higher early then moving lower for the balance of the session (down as much as 7 cents). There was some rain over the weekend in southern Brazil and favoring northern Argentina. The Monday day session brought us a recovery in prices mostly buoyed by the sharply higher soy prices. Weekly corn export inspections were disappointing as they came in at the low end of expectations. Forecasts for southern Brazil and most Argentina call for a sustained period of warm and dry to develop over the next week or two.
Interior cash corn prices run steady to higher. The midday posting at the Gulf edges higher. The March/May spread ran fractionally softer while the May forward spreads showed a bullish bias. Old crop gains on the new crop.
I see nothing bearish about new highs, new high closes. Granted weekly export inspections were disappointing I don’t a lower than expected trend in shipments developing. With weather worries dominating the Argentine crop I have to think the path of least resistance is still for higher prices. Given the correction we saw from Nov 30th to Dec 2nd (25 cents) the new technical upside target will be something closer to the $4.65 level. Many will say $4.50 is the next major hurdle as March corn $4.50 calls have the greatest open interest.
Daily Support & Resistance – 12/22
March Corn : $4.36 – $4.46 (?)
July Corn: $4.38 – $4.48 (?)
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