May Corn closed 3 ¾ cents higher ($5.58), July ¾ cent higher ($5.42 ½) & Dec 2 ¼ cents lower ($4.75 ½)
USDA announces Corn Export Sales – 1.224 M T. old crop sold to China – brings the 2-day total to 2.380 M T.
Weekly Ethanol Grind as of 3/12 – 971 K bpd vs. 938 K week ago – Stocks – 21.3 M bbls vs. 22.1 M week ago
Weekly Corn Export Sales – old crop vs. 300-750 K T. expected – new crop vs. 50-400 K T. expected
Another interesting session given that China bought another 1.224 M T. of corn. What’s interesting is that many expected to see old crop corn a lot higher than where it finished. I think what’s happening is that these sales are being reflected in part in the flat price and in part in the bull spread. With that said old crop corn is still in the flat price trading range that it has been in since mid-February. New crop corn shows an easing bias in anticipation of a big hike in corn acres that will be reported at the end of the month.
The interior Midwestern shows a firm bias as both the processor and the exporter are vying for the same bushels. The export program won’t stop anytime soon and now the ethanol market is bouncing back with vigor. The Gulf basis continues to firm. Needless to say corn spreads continue to firm not only within the old crop but also the old crop vs. the new crop. It’s almost to the point of comparing apples (old crop) to oranges (new crop).
Old crop corn remains inline to challenge trading range resistance levels if not the contract highs that were scored on February 9th. Not a big number is expected to be on tomorrow’s weekly export sales report but next week will be huge given the announced sales over the past couple of days. As far as the new crop is concerned; yes, it is in an easing bias but I don’t see it completely break down ahead of the acreage ideas at the end of the month.
Daily Support & Resistance – 03/18
May Corn : $5.50 – $5.60 (?)
Dec Corn: $4.720 – $4.80
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