March Corn closed 20 ¾ cents higher ($5.32 ¼), July 17 ½ cents higher ($5.27 ½) & Dec 9 ¾ cents higher ($4.44 ½)
February Chgo Ethanol closed $0.070 cents a gallon lower ($1.530), March 0.025 higher ($1.600)
USDA announces Corn Export Sales – 1.360 M T. to China, 102.8 K T. to Unknown
Needless to say the big news of the day was the Chinese corn sale announcement. Supposedly this sale was put together over the past few weeks and the announcement came once freight costs were fixed. Adding to this was a statement from the CEO of prominent ethanol producer that China has purchases 200 million gallons (4.7 M bbls) of ethanol for first half 2021. Other notes of the day talked about delayed 2nd season corn planting in Brazil due to the late harvest of soybeans. Overnight central Argentina received some beneficial moisture while its southern sector stays dry.
The interior Midwestern corn basis is mostly steady. Decatur, IL eases 2 cents while Council Bluffs, IA improves by 3 cents. The midday Gulf corn basis is steady at recent easier levels. Bull spreads were working all the way out to the 2022/23 new crop. The March/July settles out at new contract highs, 4 ¾ March over. The same holds true for the July/Dec; new contract highs.
Given the correction we saw last week and the Monday, Tuesday response we saw I have to think new contract highs are in the short term offering. If last week’s correction was truly a downflag prices are now projecting to the $5.90 level. Weekly charts are suggesting that if and when we get through the $5.50 level the gap that was created in July of 2013 looms large.
Daily & Resistance – 01/27
March Corn : $5.23 – $5.42 (?)
July Corn: $5.18 – $5.37 (?)
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