Corn Commentary
March Corn closes ½ cent lower ($3.79 ¼), July 1 cent lower ($3.94 ½) and Dec ¼ cent lower ($4.06 ¼)
April Chgo Ethanol closes 0.017 cents a gallon higher (1.515), May 0.014 cents higher ($1.523)
Weekly Corn Export Sales – old crop vs. 1.000-1.500 M T. expected – new crop vs. 0-100 K T. expected
Not much to do now but wait to see what the numbers look like tomorrow. CONAB will release their latest ideas on Brazilian corn production. Their last estimate was 88.0 M T. The USDA estimate last month was 95.0 M T. The average trade guess is 92.22 M T. The USDA will also update Argentine corn production. Last week BAGE (Buenos Aries Grain Exchange) suggested 37.0 M T. Last month the USDA suggested 39.0 M T. The average trade guess is 36.58 M T. Another big question – will the USDA increase corn exports and/or domestic usage?
The price action throws a minor reversal at us on Wednesday; new highs for the current rally followed by a lower close. How good are you at predicting trade reactions to USDA reports?
Daily Support & Resistance for 03/08
May Corn: $3.82 – $3.94
July Corn: $3.89 – $4.01
Dec Corn: $4.01 – $4.12
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.