March Corn closed 11 cents higher ($6.10 ½), July 10 ¾ cents higher ($6.07 ¼) & Dec 7 cents higher ($5.64 ¾)
Flat price corn moves higher with the rest of the Ag commodities fueled by an assortment of factors. US corn already has a decent demand base and if there is a perfect storm out there it could get better. The Ukraine/Russian tension is garnering a lot of attention especially if they come to blows. It would take both of these countries out of the export picture. Crude oil soaring higher promotes profitable ethanol. Don’t forget about the unknown with the SA crop. Last but not least – inflation. Look around; I could not find any commodity sector that was not higher today.
The interior corn basis ran mostly steady today maintaining recent weakness. With the 26 cent rally over the past two days (low to high) most buyers are willing to leave their basis levels unchanged. The idday posting at the gulf continues to inch higher. It seems to be a combination of demand and some transportation logistics (low water & ice). Corn spreads were pretty much steady up front while old crop once again is a noticeable gainer vs. the new crop.
Once the nearby corn contract gets past $6.18 weekly charts will then suggest something closer to the mid-$6.30’s. If we do attain that level I have to think it will come fast and furious. Geopolitical issues coupled with inflationary fears can get the market quite emotional.
Daily Support & Resistance – 01/20
March Corn: $6.00 – $6.20 (?)
July Corn: $5.97 – $6.16 (?)
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