Corn Commentary
March Corn closes ¾ cent lower ($3.51 ¼), July 1 cent lower ($3.68) and Dec ¾ cent lower ($3.85)
February Chgo CBOT Ethanol closes 0.002 cents higher ($1.326), March 0.002 cents lower ($1.352)
USDA announces 256.1 K T. of corn sold to Unknown
Informa suggests this year’s planted corn acreage will be 89.179 million vs. last year at 90.157
It was another quiet day for corn trading; just a 2 – 2 ½ daily range. Then again when implied volatility ranges from 9%-10% not much should be expected. Personally I’ll call it dead in the water while other may say were just in a very tight trading range affair. New news remains slight. The weather in Argentina remains a concern but not a big enough of a concern to prompt the big short specs to cover. What will prompt that remains to be seen. In the meantime the big spec short is enough to provide support on breaks but that’s about it.
Interior cash corn markets have a mixed look on Tuesday. Processor bids continue to be the best out there. River bids are flip-flopping back and forth depending upon location. The recent easing at the Gulf appears to have stabilized for now. Corn spreads ran steady to mixed with only fractional changes. The spread trade is just as slow if not slower than the flat price trade; another indication of being dead in the water.
Call it what you want – dead in the water or a very tight trading range affair. The bottom line is that the current price suggests flat; going nowhere fast. One of these days the market will pop and I believe it will be to the upside given the large proportion of spec shorts. When this happens, however, remains to be seen.
Daily Support & Resistance for 01/24
March Corn: $3.49 – $3.55 ($3.57)
July Corn: $3.66 – $3.72 ($3.74)
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.