March Corn closed 10 cents lower ($6.04 ¾), July 10 ¼ cents lower ($6.05 ½) & Dec 8 ¼ cents lower ($5.48 ¾)
Early overnight strength gives way to what appeared as year-end profit taking. Another day of sharp weakness in the wheat market weighed on corn prices. Areas of concern in SA (southern Brazil & parts of Argentina) remain dry with only scattered light moisture in the forecasts for later this week. These areas are also seeing above normal temps furthering the concerns.
I’m not seeing any changes with the interior corn basis. New cash sales are slow and will probably stay that way for the balance of the week. The Gulf basis stays firm from the slow pace of sales as well as strong freight rates. Spreads within the old crop only saw fractional changes; March gains ¼ cent on May & July. Old crop loses to the new crop reflecting the upfront flat price selling.
Okay; we’re looking at year-end with questionable volume but it’s hard to ignore today’s impressive looking reversal. March corn registers new highs for the move reversing to lower on the day and closing below the previous day’s low. I’m thinking this reversal will prompt some further correction/consolidation for the balance of the week.
Daily Support & Resistance – 12/29
March Corn: $5.96 – $6.11
July Corn: $5.97 – $6.12
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