March Corn closed 9 ¾ cents higher ($5.34 ¼), July 10 ¾ cents higher ($5.34 ¾) & Dec 4 ½ cents higher ($4.57 ¾)
Jan Chgo Ethanol closed unchanged ($1.630), Feb unchanged ($1.680)
Weekly Corn Export Sales – 1.437 M T. old crop vs. 700 K – 1.200 M T. expected – no new crop vs. none expected
After an attempt at correcting from Wednesday’s highs the inability to fill the Tuesday to Wednesday gap higher was enough for the technical trader to resume his buying. Weekly export sales came in better than expected and it looks like Monday’s weekly export inspections were understated by 300 K T. The trade still has concerns with the Argentine corn crop. There were some rains earlier this week and forecasts for additional this weekend but then it is slated to turn dry again. Can’t say much about the 2nd season corn crop in Brazil as I doubt there has been a seed planted yet.
Interior Midwestern cash corn markets show a defensive posture from recent cash movement. With the interior basis bids backing off due to movement has caused similar weakness at the Gulf. There are trades being reported for the April/May and June/July time slots. Spreads within the current crop year are on the defensive but old crop continues to gain on the new crop.
If there is anything in the price action that suggests the rally is running out steam I’d love to hear about it. Tomorrow is Friday and that begins a 3-day weekend. With that it in mind my worst case scenario would be one of consolidation.
Daily & Resistance – 01/15
March Corn : $5.25 – $5.45
July Corn: $5.25 – $5.45
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.