Corn Commentary

storck

Corn – Just My Opinion

March Corn closed 9 ½ cents higher ($4.66), July 9 ½ cents higher ($4.64) & Dec 3 ½ cents higher ($4.30 ¼)

Jan Chgo Ethanol closed $0.020 cents a gallon higher ($1.420), Feb $0.020 cents higher ($1.430)

If I thought Monday’s corn performance was impressive today’s performance is even more so. I did not see any announced news behind today’s rally to new highs. As of this writing I have not seen any report from the Argentine labor negotiations that were scheduled for today. A rally of this portion over the last couple of days many will say China – I have not seen any solid indications of this. What I do know is that US origin for corn exports is the cheapest out there.

Interior cash corn markets continue to read steady to firm. The Gulf basis for corn is mostly steady but with a firm undertone. Spreads within the current crop year continue to firm. At one point during the day the March/May inverted to 1 ½ cents over before finishing at even. Old crop continues to gain on the new crop. I couldn’t help but notice that spreads within the new crop are putting carry into the price structure.

In June of 2019 nearby corn prices topped out at $4.64 ¼ – we are now above that level with the current nearby contract. The next level of congestive type resistance doesn’t come into focus until $4.90. As long as cash markets, both interior and export, stay strong the bias will be for higher prices. From a technical perspective as prices move higher it tends to attract new outside buying as well as increased volatility. Since August corn prices have rallied $1.30+ and we’ve yet to make it to the outside media. It’s hard to imagine that the flat price will continue to rally right into the January 12th production/supply-demand/ stocks report but you can be sure the trade will be expecting to see bullish numbers.

Daily Support & Resistance – 12/30

March Corn : $4.61 – ???

July Corn: $4.59 – ???

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