March Corn closed 5 ½ cents lower ($5.26), July 7 cents lower ($5.25) & Dec 5 cents lower ($4.55)
February Chgo Ethanol closed unchanged ($1.630), March 0.036 cents a gallon lower ($1.605)
USDA announces Corn Export Sales – 128 K T. Japan, 100 K T. Israel
Weekly Corn Export Inspections – 876.7 K T. vs. 900 K – 1.250 M T. expected
After an attempt to move higher Monday night corn prices succumbed to the sharp sell off in soybeans. Early strength in wheat prices tried to keep the corn market alive but when those prices went south corn prices gave up the ship. Weekly export inspections fell short of expectations. Despite the shortfall in inspections bull spreads continue to work within the current crop year. Old crop prices did give way to the new crop which is consistent with the flat price selling. I think most will agree the corn market has attained a fair degree of overbought from the spec sector when looking a the most recent COT report from the CFTC.
The interior Midwestern corn basis has taken on a mixed look. Many locations are continuing to maintain the defensive posture from last week while a handful of locations are actually trying to retrace some of their recent backtracking. The midday posting at the Gulf is steady to a shade easier.
The short term look at corn charts suggest some minor downflagging is developing. Initial support is the $5.17 level (March). Closes below that level could easily prompt further liquidation down to the $5.00 level.
Daily & Resistance – 01/20
March Corn : $5.17 – $5.34
July Corn: $5.16 – $5.33
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.