Corn Commentary


Corn – Just My Opinion

May Corn closed 3 ½ cents lower ($3.51 ¼), July 3 ¼ cents lower ($3.60 ¼) & Dec 2 ¾ cents lower ($3.79 ¾)

May Chgo Ethanol closed $0.003 cents a gallon lower ($1.331) & June $0.006 cents lower ($1.341)

The selling continues as flat price corn registers another round of new contract lows, new contract low closes. The idea is that corn planting will make some decent inroads this week in the west central, western reaches of the Corn Belt. Next week remains in question as depending on which forecaster you choose to follow you can get just about any forecast you want to believe. The NWS continues to show a wet bias in both its 6-10 day and 8-14 day forecasts. Export demand ideas remain vague with SA coming online in the coming months.

Interior cash corn markets (basis) continue to firm from near non-existent movement. Both the processor and river locations continue to try and originate bushels. Unfortunately the basis improvements are not matching the flat price losses. The Gulf shows a half-hearted firming effort. Spreads continue to show a widening bias but much of that is tied into May option expiration at week’s end followed by first notice day next Tuesday.

Needless to say charts are ugly looking and they are not “legitimately” oversold. The 14-day RSI for July corn reads 30.91. The shorter term inter-charts do not read oversold either. Short term resistance is only 5-7 cents above current levels. To steady things up July corn would need to register a close above Monday’s high, roughly $3.68. Dec corn is in the same boat – its 14-day RSI is 30.85. Closes above $3.87 would steady things up here.

Daily Support & Resistance for 04/24

July Corn:??? – $3.65   

Dec Corn:??? – $3.84 ½

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.