May Corn closed 4 ¾ cents higher ($5.54 ¼), July 4 cents higher ($5.41 ¾) & Dec 1 cent lower ($4.77 ¾)
USDA announces Corn Export Sales – 1.156 M T. old crop corn sold to China
It was an interesting session to say the least! Old crop corn – the first half of the night session was spent at slight easier levels then firmed into the morning pause. During the pause the USDA announces the corn sale to China. The reopening saw limited follow through buying which led to a near 9 cent sell-off. The balance of the session was spent retracing the sell-off finishing the day 1 ¼ cents off of the day’s high. New crop corn mirrored the price action of the old crop but never traded higher on the day while losing on the spread. Most will say the Chinese corn sale is a good faith measure on their part ahead of the scheduled trade meeting between Chinese and US trade reps this Thursday in Alaska.
Most interior cash corn locations run steady to firm. It seems that processors are now in competition for origination with the river locations that are involved with export. The Gulf basis firms slightly. Bull spreads were working within the old crop as well as old crop gaining on the new crop. The bottom line is that the cash market needs more bushels and they are not getting them.
Despite the recent strength flat price corn remains a trading range affair. Since the second week of February May corn has trade between $5.25 and $5.60, July $5.12 and $5.50. One would think further export sales will push prices above the outlined trading ranges. Dec corn is trying to mark time between now and the end of the month when the USDA releases planting intentions. Early ideas are ranging from 92 million acres and 94 million acres.
Daily Support & Resistance – 03/17
May Corn : $5.48 – $5.60
Dec Corn: $4.73 – $4.82
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