March Corn closed 3 cents lower ($5.62), July 1 ¼ cents lower ($5.34 ¾) & Dec 3 ¼ cents higher ($4.84 ¾)
USDA Supply-Demand – US – left all demand data unchanged leaving carryout unchanged – World – increased production 2.26 M T. – increased total usage 1.25 M T. – increased carryout 1.14 M T.
The trade was looking for slight reductions in carryout for both the US and the World. Since the US carryout was left unchanged and the World saw a slight bump higher the corn market sold off. The sell-off didn’t last any length of time and prices popped back to levels they were sitting at prior to the report (slightly easier old crop). The short and simple version is we’re going back to monitoring SA weather (slow Brazil 2nd season corn planting and dryness in Argentine). New crop prices were barely phased by any of the goings on in the old crop as they finished as the upside leaders of the day.
Old crop corn’s trading range affair, $5.25 to $5.60, lives on. To get the old crop to pop up and out of this trading range we’re going to have to see new demand or actual deterioration of the SA crop not just speculation. Export shipments should stay stout given the amount of undelivered sales on the books but realize those sales have already been factored into the current price structure. New crop corn will probably stay strong right up to the acreage report on the 31st of this month. Right now the “chatter” target is $5.00.
Daily Support & Resistance – 03/10
May Corn : $5.40 – $5.60
Dec Corn: $4.78 – $4.90 (?)
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