March Corn closed 1 cent lower ($4.94), July ½ cent lower ($4.93 ½) & Dec ¼ cent lower ($4.41)
Jan Chgo Ethanol closed unchanged ($1.495), Feb unchanged ($1.508)
Weekly Corn Export Sales – 748.9 K T. old crop vs. 600 K – 1.200 M T. expected – no new crop vs. none expected
Trade feature of the day was consolidation with some backing and filling. Lows of the day were made early and the balance of the session was spent retracing the break. Market action would suggest the market remains well supported. Weekly export sales were disappointing vs. expectations but with solid shipment data. The latest weather ideas for SA lean towards improvement for crop development.
Interior Midwestern corn basis doesn’t do much while holding on to its firm undertone. The Gulf basis for corn stays strong. Spreads ran steady to fractionally easier for the day.
Traders’ survey by Reuters for the USDA report on Tuesday were released to today (see attached). After looking at the numbers and if the USDA gives the trade what it is expecting I’m thinking these numbers have been already priced into the market with the ongoing rally. I’m thinking the next few days we can see additional consolidation/backing and filling but nothing too dramatic. Overall prices appear well supported for the now given today’s performance.
Daily & Resistance – 01/08
March Corn : $4.89 – $5.00
July Corn: $4.88 – $4.99
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.