Corn Commentary

storck

Just My Opinion – Corn

Corn Commentary

March Corn closes 2 ¼ cents higher ($3.68 ½), July 2 ¾ cents higher ($3.85) and Dec 1 ¾ cents higher ($3.99)

March Chgo Ethanol 0.005 cent a gallon higher ($1.476), April 0.007 cent higher ($1.491)

USDA announces 130.0 K T. of old crop corn sold to unknown

Weekly Corn Export Inspections – 1.305 M T. vs. 800 K – 1.100 M T. expected

Same story – new week – the grind higher continues. Concerns over Argentine growing conditions coupled with excellent US export demand and US domestic demand keeps the corn market alive. May corn and its forward contracts make new highs for the move ranging from ½ cent to 1 cent. New high closes were seen for all of these contracts. According to the latest from the CFTC the spec trade is now in the process of amassing a new net long position. Weekly export sales came in above expectations.

Interior cash corn gives us a mixed look on Monday. Logistical problems in the riverways that lead to the Gulf has basis easier in some areas, higher in others. The processor continues to stand in. The Gulf market has been moving higher on a daily basis dating back to early last week. Corn spreads were soft within the current crop year due the potential for deliveries on Wednesday. If there are any it will be due to the idea that due to the “force majeure” no one will be able to move it. Old crop increases its lead on the new crop given the expanding demand base we have for the old crop.

I don’t see anything in the price action that would suggest the rally is over. The downside reversal we saw early last week has been negated. The path of least resistance continues to be higher but in a grinding type manner.

Daily Support & Resistance for 02/27

May Corn: $3.74 – $3.82

July Corn: $3.82 – $3.90

Dec Corn: $3.96 – $4.04

 

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