March Corn closed 8 ¼ cents higher ($5.51), July 8 ½ cents higher ($5.41 ½) & Dec 9 ¾ cents higher ($4.69 ¾)
Weekly Corn Export Inspections – 1.231 M T. vs. 500 K – 1.400 M T. expected
Solid looking weekly export inspections coupled with a noticeably lower US Dollar helped push old crop futures back up into suspected resistance levels ($5.50-$5.55 basis May). Strength in wheat added to some of the buying confidence. New crop corn registers new contract highs, new contract high closes. If I had to guess new crop corn is battling for acres vs. new crop soybeans as the price ratio sits at 2.579:1. This price ratio is getting very close to the level that supports the financial idea of more soybean acres.
The interior Midwestern corn basis has a mixed look to it today. Overall basis levels continues to be firm. The nearby slot at the gulf continues to inch higher from a slowdown in movement as well transportation problems starting to develop (ice). It should be noted that the forward time slots at the gulf are reading a bit easier. Corn spreads ran mixed as March eases to the May as we approach first notice day on Friday. The old crop loses to the new crop as new crop battles for acres vs. soybeans.
Old crop corn charts continue to honor suspected resistance levels but it has to be noticed that each time we try and sell off the market comes marching right back. New contract highs and closes in the new crop pretty much says it all.
Daily Support & Resistance – 02/23
May Corn : $5.42 – $5.56
Dec Corn: $4.62 – ???
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