May Corn closed 15 ¾ cents higher ($7.02), July 4 ¼ cents higher ($6.48 ¼) & Dec ¼ cent lower ($5.46 ¼)
Weekly Corn Export Sales – 521.3 K T. old crop vs. 400 K – 1.000 M T. expected – 553.4 K T. new crop vs. 100-600 K T. expected
There were a number of things happening within the corn market today. First we see the jockeying around ahead of tomorrow’s deliveries; there should not be any. Not only do we see the bull spreading from May to July but also the July to the Dec. After today’s weekly export sales report it suggests we are only 230 K T. of matching the USDA’s projection for the entire year. Adding to the strength of the old crop are the less than desirable conditions for Brazil’s 2nd season corn crop. I have to think that come May 12th when the USDA updates the old crop S&D’s further tightening will be required. New crop’s trade was basically consolidation following the recent run of liquidation. I’m not seeing any sustained planting problems and that should keep rallies somewhat in check. It will be interesting to see how the trade handles our first look at the new crop supply-demand on the 12th. The USDA will be obliged to use the March 31st acres and I think will be biased to use the demand data they outlined at their February conference. On paper I have to think the report will look pretty darn bullish.
Daily Support & Resistance – 04/30
July Corn : $6.35 – $6.70
Dec Corn: $5.37 – $5.63
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