March Corn closed 2 ¼ cents higher ($5.49 ¼), July 1 cent higher ($5.48 ½) & Dec 2 ½ cents higher ($4.47 ¾)
USDA announces Corn Export Sales – 125.7 K T. to Mexico, 110.0 K T. to Japan
Weekly Corn Export Inspections – 1.104 M T. vs. 1.000-1.350 M T. expected
We saw a number of features to today’s corn trade. The spec sector saw some profit taking not only in the flat price but with the old crop/new crop spreads as well. Commercial buying buoys the nearby spread. The nearby March/May closes at an inverse for the first time since Dec 31st. The March/July spread trades out to a 14 cent inverses before settling at 12 ½. Despite the bull spreading within the old crop the July/Dec spread loses 2 ¼ cents. The end result was something for everyone.
The interior river locations that feed down to the Gulf are all reporting better basis levels on Monday. Other interior locations ran mixed – the Chgo basis (Burns Harbor) was 5 cents easier, Lincoln, NE 3 cents better, Cedar Rapids 1 cent better and Council Bluffs 3 cents easier. The midday posting at the Gulf reports a slightly better basis.
Nothing bearish about new highs and new high closes. For what it is worth the nearby flat price (March) is honoring the historical weekly swing point $5.50. Weekly closes above the $5.50 level will suggest $6.25 to $6.50. Going forward for the balance of the week the discussion will center around how much will the USDA cut the corn carryout next Tuesday given the recent Chinese buying.
Daily Support & Resistance – 02/02
March Corn : $5.40 – $5.56 (?)
July Corn: $5.28 – $5.44 (?)
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