March Corn closed 13 ½ cents higher ($5.52 ¼), July 13 cents higher ($5.38) & Dec 9 cents higher ($4.57 ¾)
Weekly Corn Export Inspections – 1.322 M T. vs. 1.000-1.400 M T. expected
The corn trade Monday night, Tuesday had something for everyone. Early in the Monday night trade corn saw gains of 12 cents plus. Just before the Tuesday morning pause corn had traded back down to unchanged. By the close corn was making new highs. Monday night’s initial strength came from the energy sector as well the strength in the wheat market. Strong looking weekly export inspections added to the midday rebound. In the end it was the strength in wheat prices that buoyed corn prices to new highs for the day.
Interior Midwestern cash corn basis runs steady to higher as winter weather hampers movement. This rationale holds true for the Gulf basis as well (ice clogged rivers). Corn spreads were fractionally stronger within the old crop while old crop was a noticeable gainer vs. the new crop. The USDA holds its annual outlook conference later this week. Speculation suggests planted corn acres for the coming year to approach 93 million.
After the price action following the February S&D report last week I suggested new chart resistance for March corn would be $5.50-$5.55. Well we’re here. If I’m wrong about this level it’s another 10 cents higher. Daily momentum indicators still show a bearish bias.
Daily Support & Resistance – 02/17
March Corn : $5.45 – $5.58
July Corn: $5.31 – $5.44
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.