May Corn closed 11 cents higher ($5.80), July 10 ½ cents higher ($5.66 ½) & Dec 7 ¾ cents higher ($5.04 ¼)
It looks like the recent run of large speculator/managed fund profit taking of the past two days has run its course as old crop corn rebounds rather smartly on Tuesday offsetting Monday’s losses and then some. Not to be left out new crop corn registers new highs as fears of a slowing start to the planting season. Forecasts continue to feature below normal temps while staying dry. The cool temps will have their greatest impact in the northern Midwest (soils staying to cool for planting) where it is also perceived to be the driest. I continue to hear concerns being voiced over the dryish conditions for the second season Brazilian corn crop.
Interior cash corn markets continue to be firm whether it’s from the processor or the exporter. The gulf is mostly steady vs. recent levels. Bull spreads in corn had a nice bounce vs. the recent sell-off. It continues to be my thought that the nearby spread should continue to improve as we draw closer to May deliveries. I can’t imagine we’ll see any.
The tightness in the old crop market should continue to support futures. New crop will continue to find support as long there remains questions around the timeliness of planting. As of this writing it appears new crop corn is winning the battle of additional acres vs. new crop soybeans. Granted this is contingent on planting happening without a major hitch.
Daily Support & Resistance – 04/14
July Corn : $5.60 – $5.77
Dec Corn: $4.99 – $5.08 (?)
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.