March Corn closed 4 ¾ cents higher ($6.21), July 2 ¼ cents higher ($6.10 ¾) & Dec 2 ¼ cents higher ($5.67 ½)
USDA announces Corn Export Sale – 150 K T. to Unknown
Weekly Corn Export Inspections – 1.115 M T. vs. 900 K – 1.600 M T. expected
Old crop corn starts Sunday with a firm bias. That firm bias went away as we went into the day session only to see the firm bias come back during the duration of the session. The strength Sunday night was attributed to the strong wheat market as well as the strong demand old crop corn is experiencing. The easiness going into the day session appeared to be part of a “risk off” attitude as the equity market was going into the dumper. The comeback in the price of the old crop was attributed to the strong looking weekly export inspections as well as strong demand for domestic use (ethanol). All in all it was a very strong technical performance.
Not much happens with the interior corn basis. The Ohio River is a bit better while other locations that I track are unchanged. The midday posting for the Gulf continues with a string tone; demand and logistical issues. Bill spreads continue to work within the current crop year. The July/Dec spread ran unchanged.
As I mentioned it was strong technical performance for the corn market today; started strong, went soft only to finish at new highs for the not only the day but also for the current rally. The next upside target for March corn will be the mid-low $56.30’s. New corn will be no slouch as it will stay firm to insure acres later in the year. Dec corn registers new contract highs along with new contract high closes (nothing bearish about that).
Daily Support & Resistance – 01/25
March Corn: $6.12 – $6.30 (?)
July Corn: $6.02 – $6.20 (?)
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