March Corn closed 9 cents higher ($6.14 ¾), July 9 ¾ cents higher ($6.15 ¾) & Dec 3 ½ cents higher ($5.57)
USDA announces Corn Export Sale – 269.240 K T. sold to Unknown
Weekly Corn Export Inspections – 719.0 K T. vs. 875 K – 1.300 M T. expected
Flat price corn extends its recent rally fueled by the ongoing dryness in southern Brazil and Argentina. Forecasts suggest the best we will be able to see over the near term is just scattered minor amounts for southern Brazil. The Argentine forecasts suggest some rain for the north while the south continues to stay with the dry bias. Weekly corn export inspections were disappointing but some of that was offset by the announced export sale to unknown by the USDA earlier in the morning. The corn market also saw some indirect support from the liquidation of the wheat/corn spreads. Developing strength in the crude market was also supportive of today’s rally. Corn will continue to receive support from the weather considerations for S. America but remember we are only impacting the 1st season crop for Brazil. The 1st season corn crop for Brazil accounts for 25%-30% of the annual output.
Interior cash corn markets run steady to a shade easier. The processor still shows the best basis while river locations are showing some easiness. The Gulf basis for corn is fully steady at its midday posting when compared to last Thursday. Corn spreads ran a bit easier within the current crop year while the old crop continues to gain on the new crop.
Weekly corn charts suggest $6.20 to $6.30 represents formidable resistance. In late November March corn had a 34 cents correction before the current rally started. That correction measures to $6.31. Since this is the last week of the current year it would not surprise me to see some consolidation if not correction at or near current levels.
Daily Support & Resistance – 12/28
March Corn: $6.06 – $6.22
July Corn: $6.07 – $6.23
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