Corn Commentary
March Corn closes 4 ¾ cents higher ($3.63 ½), July 4 ½ cents higher ($3.78 ¾) and Dec 4 cents higher ($3.93 ½)
March Chgo Ethanol 0.008 cents a gallon lower ($1.423), April 0.001 cents lower ($1.437)
USDA announces 120 K T. of corn sold to Japan – 105 K T. of corn sold to Unknown
A strong export market for corn, ethanol and DDG’s, forecasts for areas of concern in SA turning iffy looking and odds favoring a lower World ending stocks number on Thursday all worked together to push corn futures to new highs for the rally that started on January 16th. Weather forecasts for Argentine continue to flip-flop back and forth depending on which weather forecasts one wants to follow. Recent wet weather in Brazil is creating logistical problems bringing recently harvested product to ports. A somewhat stabilizing equity market also lent support.
Interior cash corn locations involved with export continue to stand in. The Gulf continues to creep higher. The processor, as well, continues to stand in. Corn spreads continue to show a bias to improve even if it is only fractionally but almost on a daily basis.
A big outside day with new highs and new high closes for the current rally suggest this market is not yet done going higher. Suspected support levels were tested during the past night session while equities still looked like they were in free-fall status. Once the day session started equities began to develop a stabilizing look and that allowed corn futures to firm. The firming action lasted for pretty much the entire session. Given the recent price and its attempt to correct now suggest March corn is in line to test the the $3.68-$3.70 level.
Daily Support & Resistance for 02/07
March Corn: $3.60 – $3.67
July Corn: $3.75 – $3.82
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.