May Corn closed 14 cents higher ($5.94), July 13 cents higher ($5.79 ½) & Dec 7 cents higher ($5.11 ¼)
Weekly Ethanol Grind (4/09) – 941 K bpd vs. 975 K week ago – Stocks – 20.5 M bbls vs. 20.6 M week ago
Weekly Corn Export Sales – old crop vs. 500-900 K T. expected – new crop vs. 0-300 K T. expected
Strong interior cash corn markets, concerns over the dry conditions for Brazil’s 2nd season corn crop, a continued lower US Dollar and the possibility of a slowing start to US corn planting (cold weather) all worked together to have both old crop and new crop corn register new contract highs. The weekly ethanol grind slipped a bit. Makes me wonder if old crop corn is becoming a tough buy as both the processor and the importer compete for the same bushels. I couldn’t help but notice an Indiana processor jump his corn basis 15 cents today. So here we have a strong cash market, bull spreads working and a higher flat price – all the ingredients that a market needs to keep the rally going. Tomorrow is weekly export sales day – any number near the upper end of expectations whether it be old crop or new crop should work to keep corn prices probing new contract highs.
Daily Support & Resistance – 04/15
July Corn : $5.70 – ???
Dec Corn: $5.04 – ???
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