May Corn closed 4 cents lower ($5.90), July 2 ¾ cents lower ($5.76 ¾) & Dec 1 cent higher ($5.12 ¼)
Weekly Corn Export Sales – 327.7 K T. old crop vs. 500-900 K T. expected – 52.6 K T. new crop vs. 0-300 K T. expected
Noticeably less than expected old crop weekly export sales puts a bit of a dent in the recent rally. The sales report came out after May corn traded above the $6.00 mark for the first time dating back to 2013. New crop corn, however, manages to stand in despite some profit taking after new contract highs were registered. Argentina is getting into a bit more harvest which prompts BAGE to raise their estimate to 46.0 M T. (+1.0M T.)
Most interior cash corn markets continue to show a firming bias. The gulf, however, is reading a bit easier. The talk down there is loading delays due to excessive rain. Bull spreads took a bit of a breather today in response to the old crop flat price selling. I say a breather as corn origination will be tough to come by since we have both processors and exporters vying for origination.
From a technical point of view the flat price is deserving of a bit of correction consolidation given the recent rally. This holds true for both old crop and new crop. New crop will probably correct the least due to the ongoing concerns with timely planting. Until we see some warming temps new crop will be biased to find support on minimum breaks.
Daily Support & Resistance – 04/16
July Corn : $5.70 – $5.85
Dec Corn: $5.08 – $5.18
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