March Corn closed 4 ¼ cents higher ($6.02 ½), July 4 ¾ cents higher ($6.02 ½) & Dec 1 ½ cents higher ($5.51 ½)
Weekly Ethanol Grind (12/17) – 1.051 M bpd vs. 1.087 M week go – Stocks – 20.7 M bbls vs. 20.9 M week ago
Weekly Corn Export Sales – old crop vs. 725 K – 1.400 M T. expected – new crop vs. 0-50 K T. expected
The grind higher continues for flat price corn. Today’s catalysts were stronger crude prices, a decent ethanol grind, a lower US Dollar, weather fears out of southern Brazil & parts of Argentina and general strength throughout the Ag complex. It was interesting to note that after today’s high ($6.06 ¾) and a near 6 month high was made mid-morning profit taking set in that took prices back down below $6.00 ($5.99) but it could not stay down there.
The interior corn basis has a mixed readding today as river locations ran steady to easier while processors run fully steady. The midday Gulf basis post showed a modest rebound from recent easing. Corn spreads ran steady to fractionally softer within the current crop year while old crop continues to gain on the new crop. As long as we have weather fears out of S. America I have to think the old crop will remain biased to gain on the new crop.
Near 6 month highs and closes – nothing bearish about that. We do have a three day weekend coming at us and that may prompt some profit taking at some point during tomorrow’s session especially if we extend the rally in the early going. S. American weather is a primary issue. Weather markets during a three day weekend can make for a big re-opening one way of the other Sunday night, Monday morning.
Daily Support & Resistance – 12/23
March Corn: $5.93 – $6.13 ½
July Corn: $5.93 – $6.13 ½
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