Corn Commentary


Corn – Just My Opinion

March Corn closed 5 ½ cents higher ($4.56 ½), July 4 ¼ cents higher ($4.54 ½) & Dec 2 ¼ cents higher ($4.26 ¾)

Jan Chgo Ethanol closed $0.075 cents a gallon higher ($1.400), Feb $0.075 cents higher ($1.410)

USDA announces Corn Export Sales – 149.6 K T. to unknown

Weekly Corn Export Inspections – 993.7 K T. vs. 700-950 K T. expected

Flat price corn goes it alone with its higher closing prices on Monday. Sunday night  it traded higher with the rest crowd and broke early Monday morning with the rest of the crowd and after that it ceased to be a crowd follower. The announced export sale was no big deal. Weekly corn export inspections came in better than expected. Weather for the corn crop in Argentina leaves a lot to be desired. Prices around the world for exportable corn suggest US corn is the cheapest to be had.

Most interior corn basis locations read steady to higher from slow movement. The month of December is not known for movement as producers are willing to wait for the New Year to sell any more corn for tax purposes. The Gulf basis for corn at midday ease from last Thursday’s posting but still rather firm. Corn spreads firmed all the way out to March of 2022. Corn spreads are either at or near contract highs if not already at contract highs.

The technical performance is nothing short of impressive given the lower prices elsewhere within the Ag complex. Strong basis levels + strong spreads + strong flat price = higher flat price.

Daily Support & Resistance – 12/29

March Corn : $4.51 – $4.60 (?)

July Corn: $4.49 – $4.58 (?)

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.