March Corn closed 13 ¼ cents higher ($5.60 ¾), July 5 ¾ cents higher ($5.32 ¾) & Dec 7 cents higher ($4.75 ¾)
USDA announces Corn Export Sale – 175 K T. new crop corn to Japan
Down on Monday – up on Tuesday!! The outside news really hasn’t changed – concerns over dryness in Argentina and the 2nd season corn crop in Brazil being planted late. New news was the USDA announcing a new crop corn sale to Japan and a downturn in the US dollar. All of these factors worked together to give us today’s rebound in prices. The ongoing delivery squeeze in March corn added to the strength in May corn.
The interior Midwestern corn basis has a firm feel to it whether its for the processor or interior river locations. Movement has not been the best yet I did see some move on today’s rally. The gulf continues with its recent soft look at its midday posting. The delivery squeeze in March corn is buoying the May vs. the July. Old crop corn is running steady to lower vs. the new crop. New crop corn stays relatively firm as it continues to do its acreage battle with new crop soybeans.
Looks good – looks bad; doesn’t follow through in either direction. For the time being I’ll call May corn a trading range affair between $5.25 on the downside and $5.60 on the upside.
Daily Support & Resistance – 03/03
May Corn : $5.38 – $5.53
Dec Corn: $4.68 – $4.80 (?)
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.