March Corn closed ½ cent higher ($5.34 ½), July ¾ cent lower ($5.27 ¼) & Dec 3 ¾ cents lower ($4.38 ¾)
Weekly Corn Export Sales – 1.850 M T. old crop vs. 900 K – 1.600 M T. expected – no new crop vs. 0-100 K T. expected
USDA announces Corn Export Sales – 1.700 M T. to China, 213.6 K T. to Unknown
Corn futures had another strong start to trading today. Weekly export sales above expectations coupled with another large daily sale announcement to China had March corn challenging historic resistance, the $5.50 level. The bulge higher didn’t last too long as the next 90 minutes saw corn sell off by 21 cents (thank you very much soybeans). The balance of the session was spent trying to recoup the losses but in the end it was not very successful as old crop corn finished mixed and new crop lower. The only rationale I can come up with for the inability to sustain the rally is the sharp break in soybeans and wheat as well as some month games.
The interior Midwestern cash corn market runs steady to easier. The midday posting at the Gulf is not much better than steady. March corn loses to May while May is the leader of the bull spreads. Adding to the bull spreading is not only the demand for old crop but how much will new crop acres increase. An economist with the USDA suggests that corn and soybean acreage combined for the coming year will reach an all time record (is that really surprising?).
The technical look is suggesting that old crop corn is in line for a breather – at least until we see what the USDA has to say on the 9th when it updates supply-demand. The technical look at the new crop is suggesting the party is over for now. February is the month that sets insurance prices. Do you really think insurance prices will be above the $4.50 level? Conspiracy theory says absolutely not.
Daily & Resistance – 01/29
March Corn : $5.22 – $5.42
July Corn: $5.15 – $5.35
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