March Corn closed 6 ¼ cents lower ($5.43), July 5 ½ cents lower ($5.31 ¼) & Dec ¾ cent lower ($4.47)
USDA announces Corn Export Sales – 115 K T. to Mexico
The bull needs to be fed everyday and the recently announced cargoes (yesterday and today) to Mexico and Japan doesn’t cut it when the trade has gotten used to million ton units sold to China last week. This doesn’t mean the market has turned bearish it just says the recent run of new highs is taking a breather. As I mentioned yesterday the next test of the bull market will be whatever the USDA has to say next Tuesday when they update the US Supply-Demand. I have to think the trade will be anticipating a noticeable drawdown in the carryout due to the recent Chinese buying.
Interior Midwestern cash corn markets show a steady to higher bias. The Gulf market too is edging higher. Despite the firmer cash markets spreads within the current crop year ran steady to easier. Old crop/new crop spreads took a noticeable hit. The spread motion suggests the market is in a minor liquidation mode from the spec sector.
Old crop corn charts suggest consolidation that may feature some additional minor liquidation over the next couple of days. On Thursday the trade will be anticipating some fairly sizeable sales on the weekly report. With that in mind I can’t imagine we’ll see too much of a break. If we do due to the high volatility I have to think it will be well received.
Daily Support & Resistance – 02/03
March Corn : $5.35 – $5.51
July Corn: $5.23 – $5.39
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.