Corn Commentary

storck

Corn – Just My Opinion

May Corn closed 6 ¾ cents lower ($5.46 ½), July 4 ¾ cents lower ($5.32 ½) & Dec 3 ½ cents lower ($4.65 ½)

Weekly Corn Export Sales – 4.481 M T. old crop vs. 3.800-4.700 M T. expected – 144.6 K T. new crop vs. 0-500 K T. expected

USDA announces Corn Export Sales – 111.0 K T. old crop corn to Japan

The phrase of the day is “Risk Off”. Corn futures broke hard in the early going despite what I thought were decent weekly export sales. Yes, the announced sales to China were in today’s report plus another 600 K T. Add the announced sale to Japan had me thinking prices should be able to stand in. Offsetting all of this and more was the sharply lower crude market, the higher US dollar, planting happening at a good clip for Brazil’s second season corn crop and some decent overnight rains in Argentina for its late finishing crop. Prices managed to bounce off of the early lows but by the end the day it was still considered “risk off”.

Interior Midwestern cash corn markets (basis) are no worse than stable. Both processors and exporters continue to vie for origin. The gulf market at midday appeared to be a bit easier. Spreads sold off along with the “risk off” flat price action.

The other day I suggested May corn would trade no worse than $5.40 ahead of Wednesday’s stocks report and Dec corn no worse than $4.60. I still believe that.

The Bloomberg survey for Quarterly Corn Stocks suggests 7.750 B Bu. vs. 7.952 B bu. year ago – Corn Plantings – 93.1 M acres vs. 90.8 M year ago

Daily Support & Resistance – 03/26

May Corn : $5.40 – $5.54

Dec Corn: $4.64 – $4.75

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.