May Corn closed 38 ½ cents lower ($7.19), July 40 cents lower ($6.74 ¾) & Dec 34 ¾ cents lower ($5.58 ¼)
Weekly Corn Export Sales – -113.3 K T. old crop vs. 100-300 K T. expected – 2.083 M T. new crop vs. 700 K – 2.100 M T. expected
USDA announces Corn Export Sales – 680 K T. new crop sold to China
Barge traffic headed to Gulf is stopped in Memphis due to bridge safety issues. As of this writing there is no timeline on allowing barges to move south beyond this location. This issue is breaking the corn basis at river locations north of this area. Basis from the processor also eased. The Gulf basis eased as well which seems odd since there are no new supplies moving the Gulf. Today’s weekly export sales showed greater old crop cancellations vs. originally thought – new old crop corn sales were a +572.5 K T. while net sales were a -113.3 K T. These two factors weighed on old crop and its respective spreads. The ongoing dry conditions with the Brazilian 2nd season was barely given a nod today. New crop corn continues to move lower from yesterday’s bearishly construed USDA report despite a healthy looking new crop corn sales report. The idea is acres will increase while the trade questions the cut in demand. All of these factors led to a massive scale of liquidation. The break in energy prices added to the day’s pessimism.
Daily Support & Resistance – 05/14
July Corn: $6.50 – $7.00
Dec Corn: $5.40 – $5.85
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