Corn Commentary
March Corn closes 1 ¼ cents higher ($3.85 ½), July 1 ¼ cents higher ($3.99 ¾) and Dec 2 cents higher ($4.09 ¾)
April Chgo Ethanol closes 0.010 cents a gallon higher (1.522), May 0.012 cents higher ($1.537)
USDA announces 210.0 K T. of optional origin corn sold to S. Korea
USDA announces corn sales for the 4th day in a row; the 4-day total is 942.5 K T. If this doesn’t say we are the US is the corn market to the World I don’t know what does. We saw new highs for the move in the early going on Tuesday but the selloff in wheat kept corn prices from closing in new high ground. Going forward it will continue to be all about demand. From everything I read the Argentine corn crop continues to shrink. I don’t see the 2nd season corn crop out of Brazil increasing in size. One of the prominent news wires ran a story about 2nd season corn acres in Brazil losing out to increased planting of cotton.
Interior basis levels continue to be on the defensive from new cash corn movement. The Gulf market is also showing signs of easing from the movement. Corn spreads ran softer out the Dec while Dec forward spreads saw fractional improvement. I have to think that’s all about the spec piling into the Dec contract.
The going (rally) should begin to get a little rougher as May corn nears the $3.98 level. That suggests the July contract starts having problems above the $4.05 level and Dec against $4.15. I’m not ready to say the market is going to start topping out but rather an unwillingness to chase the bulge.
Daily Support & Resistance for 03/14
May Corn: $3.86 – $3.96
July Corn: $3.94 – $4.04
Dec Corn: $4.04 – $4.14
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