March Corn closed 3 ¼ cents higher ($5.99 ½), July 3 cents higher ($5.96 ½) & Dec ½ cent lower ($5.57 ¾)
USDA announces Sorghum Export Sale – 126 K T. to Unknown
Weekly Corn Export Inspections – 1.204 M T. vs. 800 K – 1.200 M T. expected
The corn market experienced a lot of push/pull today. The weather in SA is turning to beneficial for crop development and that initially weighed on prices. Surging higher crude oil prices is indirectly bullish for corn prices (ethanol). Sharply higher wheat prices lend indirect support despite the inter-market spreading of buying wheat vs. selling corn. Solid weekly export inspections lent support.
Interior cash corn (basis) runs steady to easier. I wouldn’t be surprised if the recent interior weakness is a result of new year movement. The Gulf, however, continues to firm to its best levels of the season. Bull spreads work within the current year as well as old crop gaining on the new crop.
The technical look at corn prices suggests a bias to move higher; at least a challenge of the December 28th interim high, $6.17 ¾. Export sales, export loadings, strength in energy prices all work together to support this market. Despite the recent downturn in managed money longs corn still appears to be the most desired market for their investment.
Daily Support & Resistance – 01/19
March Corn: $5.93 – $6.08
July Corn: $5.90 – $6.05
The risk of trading futures and options can be be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.