May Corn closed 2 cents lower ($7.57 ½), July 7 ½ cents lower ($7.14 ¾) & Dec 18 ¼ cents lower ($5.93)
USDA announces Corn Export Sales – 100 K T. sold to Mexico (30 old, 70 new)
Weekly Ethanol Grind – 979 bpd vs. 952 week ago – Stocks – 19.4 M bbls vs. 20.4 M week ago
Weekly Corn Export Sales – old crop vs. 100-300 K T. expected – new crop vs. 700 K – 2.100 M T. expected
The USDA tightens up the US old crop corn carryout. Lower wheat prices weighed on old crop corn muting some of the decline in the carryout. The USDA cuts export demand for the US new crop leading to a higher than expected carryout. Add the idea of increased corn planted acres and that leads to lower new crop prices. The USDA cut the Brazilian crop by 7.0 M T. but then cut the global demand by a near similar amount leaving the World old crop corn carryout near unchanged. The new crop World carryout comes in higher than expected; nearly 9.0 M T. higher vs. the current old crop carryout. The bottom line to all of this suggests limited downside to the old crop while the new crop still has room to move lower. Bull spreads, old crop to new crop, should still work.
Daily Support & Resistance – 05/13
July Corn: $6.98 – $7.30
Dec Corn: $5.78 – $6.02
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