March Corn closed 8 cents lower ($5.47 ½), July 8 cents lower ($5.27) & Dec 2 cents lower ($4.68 ¾)
Weekly Corn Export Inspections – 1.636 M T. vs. 1.150-1.750 M T. expected
It was a disappointing Monday for the corn bulls. Sunday started firm but that was it. The session highs were made in the first 3 minutes and after that it was a steady 17 cent slide right into the day’s close. Weekly export inspections were decent based on expectations. A lack of new demand remains noticeably absent. It’s the absence of new demand is what is weighing on the market. Export inspections are deemed old news that have already been priced into the market. SA weather talks about the continuation of a slow start to the Brazilian 2nd season corn crop; currently 39% planted vs. year ago at 67%. . Argentina talks about enough moisture in the northern reaches while a dry bias favors its south.
The interior Midwestern corn basis runs steady to firm mostly from slow movement. March gains on May from a lack of deliveries against the March contract. May forward spreads were under the gun against within the current crop year. Old crop was a noticeable loser to the new crop. The gulf basis picks up where it left off on Friday; easing.
Old crop corn charts aren’t looking too spiffy as May corn registers a 9-day low and close. I have to think price action below the $5.35 level (May) will attract additional selling/liquidation. If that were to occur $5.25 would be the next level of support. New crop corn charts also look like they could see some additional downside over the near term. $4.60 is deemed as first support (Dec).
Daily Support & Resistance – 03/02
May Corn : $5.35 – $5.45
Dec Corn: $4.65 – $4.75
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