Corn Commentary
March Corn closes 2 cents higher ($3.70 ½), July 2 cents higher ($3.87) and Dec 1 cent higher ($4.00)
March Chgo Ethanol 0.003 cent a gallon higher ($1.479), April 0.001 cent lower ($1.490)
USDA announces 130.0 K T. of corn sold to unknown.
Not a lot to say other than the grind higher continues. We continue to see export sales’ announcements almost on a daily basis. We know feed demand is excellent given recent livestock reports. Grinding for ethanol continues to be solid. Underpinning the US demand is the unknown around SA production. Brazil 2nd season corn is expected to be lower and from what I hear the Argentine corn crop continues to decline. The delivery period starts tonight/tomorrow. We may see some corn delivered but I would be surprised to see a lot given the ongoing demand base.
Interior basis levels read steady to higher. Interesting to note that locales that are rolling to a May basis are doing at a 5-6 cent spread; not the 8 ½ to 9 cent March/May spread. I say interesting as new highs on the Board are thought to be attracting cash corn sales. The Export market continues to be strong given the ongoing export program as well as the logistical problems getting corn to the Gulf. Spread ran flat within the crop year while old crop gains on the new crop.
Nothing bearish about new highs and new high closes. That I believe says it all. If and when May corn gets through $3.82 I see nothing until we get closer to $3.88-$3.90.
Daily Support & Resistance for 02/28
May Corn: $3.75 – $3.82 (?)
July Corn: $3.83 – $3.90 (?)
Dec Corn: $3.97 – $4.02 ($4.04)
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