Corn Commentary
May corn closes 3 ¼ cents lower ($3.74), July 3 ¼ cents lower ($3.82 ½) and Dec 2 ½ cents lower ($3.96 ¾)
April Chgo Ethanol closes 0.021 cents a gallon lower (1.430), May 0.016 cents lower ($1.451)
Weekly Corn Export Inspections – 1.153 M T. vs. 1.250-1.500 M T. expected
After the Friday morning to Monday morning 11 cent rally flat price corn settles back into a consolidation mode as traders contemplate the recent guesstimates for Thursday’s Quarterly Stocks and Prospective Plantings reports (see separately attached table). I would expect to see more of this consolidating type trade for the next 2 ½ days. Not only do we have these reports coming at us but this week is also month end and quarter end. I would be surprised to see any type of extreme price action prior to Thursday’s reports.
Recent weakness in the river locations that feed to export appear to be stabilizing. The processor continues to show the best bids out there. Cash corn movement is minimal at best. Corn spreads within the current crop year are mostly steady while old crop loses to the new crop. Are the spreads trying to tell us we could see a bearish Stocks report while seeing a bullish acreage report?
Price charts are a bit difficult to read given Friday’s interim spike low vs. Monday morning’s interim spike high. With that said I’ll suggest flat price corn settles in to a tight range as we await Thursday’s USDA data.
Daily Support & Resistance for 03/27
May Corn: $3.72 – $3.78
July Corn: $3.81 – $3.86
Dec Corn: $3.95 – $4.01
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