To start the week corn opened lower but firmed to trade with gains throughout the night session and even extended session gains once the day session started. Technical buying and position squaring ahead of the holiday added early support. Strong demand added support as last week’s export inspections estimate was at the top of expectations. Reports that Brazil has completed planting of their first corn crop added pressure, but that was slightly offset by reports of hot and dry conditions for Argentina. AgRural is estimating Brazil’s corn production at 121.3 MMT vs CONAB’s estimate from last week at 119.6 MMT and vs USDA projection of 127 MMT. Support continues to come from last week’s USDA report, but at this point rallies are being met with farmer selling. Gains were kept in check from spill over pressure from a lower soybean complex.
In Tuesday’s session corn opened the session steady and managed to turn higher and end the night with small gains. Like wheat, corn’s overnight session saw a tight trading range of only 2 cents. Early strength was due to reports of Mexico coming in and buying 170.4 MMT of US corn overnight. But selling took charge once the day session started with early selling spilling over from the lower soybean market. It seems today is a bit more of a profit taking session in corn than anything as trading remains thin and uneventful. Dr Cordonnier left his production estimate for Brazil unchanged at 125 TMT but increased Argentina’s production estimate 1 MMT to 49 MMT. Technically no damage was done to corn today as most months remain in their established trading ranges.
On Wednesday corn opened the session higher and continued to trade with gains throughout the night. Early support came from news that Columbia was in and bought 135 TMT of US corn overnight. Gains were trimmed with the announcement that China is halting auctions of imported corn from their state reserves in an attempt to prop up the price domestically. As of now, Congress has a provision in the CR to approve E15 for year-round use. This is not expected to increase demand due to previous year’s waivers. Corn lost its gains late in the session due to spill over pressure from the lower soybean complex. Light pressure was also due to reports that the Brazilian Real is at record low vs US dollar.
Last week’s ethanol production was estimated at 1.103 million barrels per day, up 25,000 barrels from the previous week. Stocks were estimated at 22.64 million, down 12,000 barrels from the previous week. Cash demand increased.
Corn opened the session lower but managed to recover and end the overnight session with small losses on Thursday. Early selling was tied to spill over pressure from a lower US wheat complex. Light selling was also tied to reports that South Korea bought 201 TMT of optional origin corn. Corn turned higher once the day session started but waffled around before finding footing late int eh session. By the close corn was posting decent gains with most of the support spilling over from a higher US soybean complex. Technical buying was also evident as corn bounced off support.
Target $4.65 to advance sales.
March corn support is at $4.05 while resistance is at $4.50.
For the week, Mar corn was at $4.4625 up 4.25 cents. May corn was at $4.5175 up 2.5 cents.
Corn Weekly Comments Dec 20
Corn Weekly Comments Dec 20
To start the week corn opened lower but firmed to trade with gains throughout the night session and even extended session gains once the day session started. Technical buying and position squaring ahead of the holiday added early support. Strong demand added support as last week’s export inspections estimate was at the top of expectations. Reports that Brazil has completed planting of their first corn crop added pressure, but that was slightly offset by reports of hot and dry conditions for Argentina. AgRural is estimating Brazil’s corn production at 121.3 MMT vs CONAB’s estimate from last week at 119.6 MMT and vs USDA projection of 127 MMT. Support continues to come from last week’s USDA report, but at this point rallies are being met with farmer selling. Gains were kept in check from spill over pressure from a lower soybean complex.
In Tuesday’s session corn opened the session steady and managed to turn higher and end the night with small gains. Like wheat, corn’s overnight session saw a tight trading range of only 2 cents. Early strength was due to reports of Mexico coming in and buying 170.4 MMT of US corn overnight. But selling took charge once the day session started with early selling spilling over from the lower soybean market. It seems today is a bit more of a profit taking session in corn than anything as trading remains thin and uneventful. Dr Cordonnier left his production estimate for Brazil unchanged at 125 TMT but increased Argentina’s production estimate 1 MMT to 49 MMT. Technically no damage was done to corn today as most months remain in their established trading ranges.
On Wednesday corn opened the session higher and continued to trade with gains throughout the night. Early support came from news that Columbia was in and bought 135 TMT of US corn overnight. Gains were trimmed with the announcement that China is halting auctions of imported corn from their state reserves in an attempt to prop up the price domestically. As of now, Congress has a provision in the CR to approve E15 for year-round use. This is not expected to increase demand due to previous year’s waivers. Corn lost its gains late in the session due to spill over pressure from the lower soybean complex. Light pressure was also due to reports that the Brazilian Real is at record low vs US dollar.
Last week’s ethanol production was estimated at 1.103 million barrels per day, up 25,000 barrels from the previous week. Stocks were estimated at 22.64 million, down 12,000 barrels from the previous week. Cash demand increased.
Corn opened the session lower but managed to recover and end the overnight session with small losses on Thursday. Early selling was tied to spill over pressure from a lower US wheat complex. Light selling was also tied to reports that South Korea bought 201 TMT of optional origin corn. Corn turned higher once the day session started but waffled around before finding footing late int eh session. By the close corn was posting decent gains with most of the support spilling over from a higher US soybean complex. Technical buying was also evident as corn bounced off support.
Target $4.65 to advance sales.
March corn support is at $4.05 while resistance is at $4.50.
For the week, Mar corn was at $4.4625 up 4.25 cents. May corn was at $4.5175 up 2.5 cents.