March Corn closed 2 ¾ cents higher ($5.53 ¾), July 1 cent higher ($5.42 ½) & Dec unchanged ($4.69 ¾)
Today’s high in old crop corn was the best level we’ve seen since the downside reversal seen on February 9th. New crop corn scores another contract high but closes unchanged on the day. The old crop push higher was attributed to late planting of the Brazilian 2nd season corn crop as well as another round of developing dryness for Argentina. Highs of the day did not last all that long in the old crop as new export demand (China) has been noticeably absent. Brazil talks although 2nd season planting is late acreage will expand creating an offsetting issue; possible yield loss due to late planting vs. an increase in acres.
In recent days the March/May corn spread has been under some mild pressure due to the upcoming 1st Notice day on Friday. That spread did some rebounding today. I have to think this spread will see some fun and games ahead of Friday. Other calendar corn spreads are showing signs of stabilizing after easing since the February 9th downside reversal.
Old crop corn does some serious resistance probing and so far the suspected resistance levels are holding. There’s an old adage about the bull needing to be fed every day. Today’s high in old crop vs. where it closed was not the most encouraging. I’m not going to try and pick a top but closes below the $5.40 level (May) will not be well received. New crop corn has room to retrace lower (Dec down to $4.60) without putting a dent in the current up trend.
Daily Support & Resistance – 02/24
May Corn : $5.45 – $5.60
Dec Corn: $4.63 ½ – $4.75 (?)
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