March Corn closed 3 ½ cents higher ($3.82 ¼), July 3 ¼ cents higher ($3.92 ¾) & Dec 3 ¼ cents higher ($3.92 ¾)
February Chgo Ethanol closed $0.013 cents per gallon higher ($1.353), March $0.013 cents higher ($1.367)
The US corn market gets a boost in the overnight session prompted by rebounding Chinese Ag markets. The US futures market did well for itself by sustaining a good portion of that boost during the day session. New news directly pertaining to US corn demand was slight. The thought remains that US corn remains the cheapest out there at least until the Argentine new crop becomes available sometime later in March. The weather in Argentina remains beneficial for its developing corn crop. Weather forecasters are suggesting excessive rainfall for some of the harvest ready soybean areas of Brazil which in turns will delay the planting of its second season corn crop.
The interior cash corn market continues to show a firm undertone mostly prompted by slow producer selling. The Gulf basis runs mostly steady with recent postings. Corn spreads on the day ran mixed to steady; March/July a ¼ cent better while the July/Dec ran unchanged. The Sept contract lost fractionally to the old crop as well as to the Dec.
As of this writing I’m still not looking past the corn market being a trading range affair; $3.75 to $3.95 March. I’m not sure much more needs to be said unless these levels are violated.
Daily Support & Resistance – 2/05
March Corn – $3.78 ½ – $3.86
July Corn – $3.89 ½ – $3.97
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.