May Corn closed 5 ½ cents lower ($3.26), July 4 cents lower ($3.32 ¼) & Dec 3 ¼ cents lower ($3.46 ½)
May Chgo Ethanol closed $0.003 cents a gallon higher ($0.947), June $0.011 lower ($0.970)
Did I really suggest the corn market may be running out of sellers – what was I thinking? I am not sure the selling is all that great but what selling there is appears to be enhanced by a lack of buying. The story hasn’t changed – slow grinding for ethanol and the eventual slowing of feeding. Exports are okay but they are not enough to offset the slowing domestic disappearance.
Interior cash corn movement remains slow. Some of the more efficient processors continue to stand in for corn while others with less efficiency are virtually out of the market. Interior locations involved with export are standing in with a slightly higher trend for their respective basis levels. The gulf basis for corn has eased to levels not seen since the 3rd week of March. Corn spreads saw noticeable losses on the day. I’m not sure how much of this can be attributed to the fact that today was the last day for the big boy index fund roll.
July corn registers an inside day of Monday. With that said the attempt to consolidate is still with us. The same holds true for new crop corn. So – from a technical standpoint the corn market is trying to stand in while the fundamental aspect of the market asks “why”. As of this writing I’m willing to sit on the sidelines and observe.
Daily Support & Resistance – 4/15
July Corn – $3.30 – $3.38
Dec Corn – $3.45 – $3.52
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.