Corn Commentary
March Corn closes ¼ cent higher ($3.65 ¾), July ¼ cent higher ($3.81 ¾) and Dec ½ cent higher ($3.96 ½)
March Chgo Ethanol 0.002 cents a gallon lower ($1.477), April 0.005 cents lower ($1.489)
Flat price corn sees only minor follow through selling following Tuesday’s suggestive downside reversal. Concerns over the growing conditions in Argentina continue to provide the best “headlines” support. Couple this with the improving domestic demand for corn it allows the market to finish the day fractionally higher. the remaining anticipated features for the week are weekly export sales which have been delayed to Friday as well as the USDA annual AG Outlook meeting that starts tomorrow. Any changes in the previously released ideas for acre, yield and such will be made know on Friday. For what it is worth trade surveys are looking at planted corn acreage to be reduced to 89.9 million acres vs. the recently released long term forecast that suggested 91.0 million planted acres.
Only a couple of changes are being noted with the interior corn basis; Illinois River locations are showing improvement. I guess the idea of flooding slowing down barge traffic hasn’t yet occurred. I do know the Gulf is showing some of its best bids in quite some time. Despite this strength corn spreads ran pretty flat on the day.
The suggested reversal that was registered on Tuesday remains intact despite the fractional higher close. Early in the Wednesday day session the trade tried to negate that reversal but fell short. I remain with the idea that unless SA forecasts change flat price corn should experience some pretty decent support down 5 or so cents from tonight’s closing levels.
Daily Support & Resistance for 02/22
March Corn: $3.62 – $3.68 ½
July Corn: $3.78 – $3.84 ½
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