March Corn closed 8 cents higher ($4.91 ¾), July 8 ¼ cents higher ($4.90 ½) & Dec 4 cents higher ($4.38 ½)
Jan Chgo Ethanol closed unchanged ($1.485), Feb unchanged ($1.495)
Flat price corn rebounds from Monday’s attempt to sell off after challenging the $5.00 level. So far the Sunday night high ($4.97 ¾) remains intact as today’s high was $4.96. Strength continues to come from the Argentine ban on corn exports (at least until March 1st). The sharp rally in the energy markets lent support to the corn market as it will help the profitability in the ethanol grind. The continued slump in the US dollar works to offset the flat price rally in the world’s export circles which in turns keeps US origin competitive. Last but not least the anticipation of a bullish report from the USDA next Tuesday has attempts to sell off between now and then well received.
Interior Midwestern cash corn markets show mixed readings. I’m not sure we’re seeing any new cash corn sales as I get the impression the US producer along with the speculative public are rather bullish corn prices going forward. Gulf bids at the midday posting are showing a noticeable jump vs. last night. Upfront spreads ran steady to fractionally mixed while old crop continues to gain on the new crop.
Given where the March corn highs are over the past two days has me asking myself how good is the suspected resistance at the $4.95-$5.00 level (March)? My bias is to see a consolidation effort with the aforementioned as resistance between now and next Tuesday.
Daily Support & Resistance – 01/06
March Corn : $4.85 – $4.98
July Corn: $4.84 – $4.97
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