March Corn closed 3 ½ cents higher ($4.43 ½), July 2 cents higher ($4.44 ¼) & Dec ¼ cent lower ($4.19 ¾)
Jan Chgo Ethanol closed unchanged ($1.325), Feb unchanged ($1.335)
Weekly Corn Export Sales – old crop vs. 600 K – 1.000 M T. expected – new crop vs. none expected
Tuesday brings us another round of new highs, new high closes. Questionable growing conditions in Argentina as well as their ongoing labor strike lends support. The biggest feature that I saw on the day was noticeable jump at the midday gulf posting; up 6-7 cents vs. last night’s posting. Despite the new highs in the flat price new cash sales remain less than one might think. The month of December has a reputation for strong basis as the producer is a reluctant seller not wanting to declare more taxable income at year’s end.
The interior Midwestern cash corn basis runs steady mixed vs. Monday’s posting. Cedar Rapids runs 4 cents easier while river locations run steady to better. As I mentioned earlier the Gulf basis sees a noticeable jump overnight. Bull spreads were the rule of the day not only in the old crop but also old vs. new.
I see nothing bearish here. I see nothing that would indicate the ascent is running out of steam. Bull spreads are working, the export market wants product and the flat price continues to move higher – all of the necessary indications of an ongoing bull market.
Daily Support & Resistance – 12/23
March Corn : $4.36 – $4.46 (?)
July Corn: $4.37 – $4.47 (?)
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