March Corn closed 2 ½ cents lower ($3.77 ¼), July 2 ½ cents lower ($3.93 ¾) & Dec 2 cents lower ($4.01)
February Chgo Ethanol closes 0.003 cents a gallon lower ($1.268) & March 0.002 cents lower ($1.282)
USDA announces 138.0 K T. of optional origin corn sold to S. Korea
Was the trade disappointed that the USDA did not announce any “daily” export sales that occurred during the government shutdown? Today’s announced sale is feeble looking. On Thursday the USDA will resume the “weekly sales” report. It will be interesting to see if it is up to date and by how much the cumulative sales have increased. If one reads all of the rhetoric that is out there concerning the ongoing US/China trade talks it is my opinion that the US will not get everything they are asking for. If true how will the US react? Will they go forward with the increased tariffs that have been threatened or will they extend the negotiations beyond the March 1st deadline? The bottom line to all that remains to be seen but it appears the trade is disappointed with all that’s going on at least so far.
The interior corn basis has taken on a mixed look. Interior locations that are landlocked show a bias to improve from slow movement. Some river locations have backed off on their basis due to weather induced logistical problems. The Gulf basis has eased some from Friday’s surge; still about 8 cents higher vs. last Tuesday’s posting. Corn spreads remain relatively wide; March loses fractionally to May – May gains fractionally to July – old crop eases vs. the new crop.
Despite the easier closes of the past two days the technical read really hasn’t changed. The long term look remains to be a consolidating affair within a broad sideways that features lower highs and higher lows.
The CFTC announced it will resume its COT reports on Friday but it will be done incrementally. This Friday will feature the COT report as of Dec 24th. The next one will follow on next Tuesday and then another on next Friday. It will continue in this fashion until they are all caught up.
Daily Support & Resistance for 01/30
Mch Corn: $3.75 – $3.81 July Corn: $3.91 – $3.97
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