Corn Commentary
March Corn closes 4 ¼ cents higher ($3.78 ¾), July 4 cents higher ($3.93 ½) and Dec 3 ¼ cents higher ($4.04 ¾)
March Chgo Ethanol 0.001 cent a gallon higher ($1.470), April 0.003 cent higher ($1.493)
Weekly Corn Export Sales – 1.753 M T. old crop vs. 1.000-1.400 M T. expected – no new crop vs. 0-100 K T. expected
BAGE (Buenos Aries Grain Exchange) says Argentine corn crop is 37.0 M T., unchanged from previous estimate – USDA last month was 39.0 M T.
Solid weekly export corn sales, ongoing concerns over Argentine crop size and technical considerations has flat price corn furthering the rally that started back in mid-January. Speculative buying is overshadowing what is thought to be excellent cash movement. When the specs are on a mission (developing a net long position in this case) you can’t stand in front of them.
Corn processors have taken on a defensive posture given recent cash corn sales. Locations involved for export have a mixed look. The Gulf stays firm from logistical problems on the riverways. Corn spreads within the crop year are steady to fractionally better. Old crop continues to gain on new crop.
My technical look has May corn looking at the mid-$3.90’s with an outside shot at $4.05. New crop corn, December, is looking at challenging the $4.10-$4.13 level. 8-10 cents breaks from current levels should find decent support.
Daily Support & Resistance for 03/02
May Corn: $3.80 – $3.92
July Corn: $3.87 – $3.99
Dec Corn: $3.98 – $4.10
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.