To start the week corn traded with small gains overnight and added to the gains in the day session to close with solid gains. Corn is sitting at levels not seen since June 2024. Support carried over from Friday’s reports as USDA cut the corn yield by 3.8 bu. to 179.3 bu., which was sharply lower than expected. Production was cut 276 MB. Additional support came from last week’s export shipments report. Corn shipments at 56.7 MB were much higher than expected and a marketing year high. Shipments are running 27% above last year’s pace. Technical buying was also supportive. 1st crop corn harvest has begun in Brazil with 1.3% of the crop harvested.
On Tuesday corn opened the session lower and extended session losses throughout the night and into the day session. Early selling was tied to profit taking as week longs grabbed profits off the last two days run. Light selling was also tied to weather forecasts for Argentina calling tor rain to start Thursday through the weekend. Although limited, the rain if realized will bring some relief and buy the crop time. Corn managed to shake off selling pressure early in the day session with support spilling over from the higher winter wheat exchanges with light support coming from reports that Columbia was in and bought 100 TMT of US corn overnight. CONAB lowered their Brazilian corn production estimate to 119.55 MMT vs 119.63 MMT previously. Dr Cordonnier left his Brazilian corn production estimate unchanged at 125 MMT. Argentina’s production was lowered 1 MMT to 49 MMT. But once soybeans turned lower late in the session, corn followed.
In Wednesday’s session corn opened the overnight session lower, but corn managed to shake off the early selling pressure and turn higher. Early pressure was due to profit taking and position squaring. Light pressure came from forecasts calling for rain for Argentina starting tomorrow and lasting through the weekend. This rain is not expected to be a crop saving rain, but if realized could help bridge the gap to the next rain system. Corn brushed off the selling pressure as traders are not done with building premium back in corn due to last Friday’s surprising report. News that Taiwan bought 65 TMT of US corn added support. Technical buying was also evident as corn works its way to the next level of resistance, which is $4.95 March.
Last week’s ethanol production report came in at 1.095 million barrels, down 7,000 barrels from the previous week. Stocks were estimated at 25.01 million barrels, up 860,000 barrels from the previous report. Gas demand dropped slightly from last week.
Corn opened Thursday’s session steady but sold off to end lower. Early selling was tied to forecasts calling for rain today in Argentina. But that rain has been delayed for a day and now forecasts are calling for rain starting tomorrow and lasting through the weekend. Amounts and coverage also decreased from yesterday’s forecast. Losses were trimmed in early trading due to a better than expected export sales estimate, as last week’s pace was at the top of expectations. News Taiwan was in and bought 135 MMT of corn overnight added support. Light selling was tied to profit taking as corn traded up to highs not seen since Dec 2023. Position squaring ahead of the long weekend was also evident. Rosario Grain trimmed their production estimate for Argentina 3 MMT to 48 MMT. Technically no damage was done to corn today.
Target $4.95 to advance sales.
March corn support is at $4.50 while resistance is at $4.95.
For the week, Mar corn was at $4.8425 up 13.75 cents. May corn was at $4.93 up 13.5 cents.
Corn Weekly Comments January 17
Corn Weekly Comments January 17
To start the week corn traded with small gains overnight and added to the gains in the day session to close with solid gains. Corn is sitting at levels not seen since June 2024. Support carried over from Friday’s reports as USDA cut the corn yield by 3.8 bu. to 179.3 bu., which was sharply lower than expected. Production was cut 276 MB. Additional support came from last week’s export shipments report. Corn shipments at 56.7 MB were much higher than expected and a marketing year high. Shipments are running 27% above last year’s pace. Technical buying was also supportive. 1st crop corn harvest has begun in Brazil with 1.3% of the crop harvested.
On Tuesday corn opened the session lower and extended session losses throughout the night and into the day session. Early selling was tied to profit taking as week longs grabbed profits off the last two days run. Light selling was also tied to weather forecasts for Argentina calling tor rain to start Thursday through the weekend. Although limited, the rain if realized will bring some relief and buy the crop time. Corn managed to shake off selling pressure early in the day session with support spilling over from the higher winter wheat exchanges with light support coming from reports that Columbia was in and bought 100 TMT of US corn overnight. CONAB lowered their Brazilian corn production estimate to 119.55 MMT vs 119.63 MMT previously. Dr Cordonnier left his Brazilian corn production estimate unchanged at 125 MMT. Argentina’s production was lowered 1 MMT to 49 MMT. But once soybeans turned lower late in the session, corn followed.
In Wednesday’s session corn opened the overnight session lower, but corn managed to shake off the early selling pressure and turn higher. Early pressure was due to profit taking and position squaring. Light pressure came from forecasts calling for rain for Argentina starting tomorrow and lasting through the weekend. This rain is not expected to be a crop saving rain, but if realized could help bridge the gap to the next rain system. Corn brushed off the selling pressure as traders are not done with building premium back in corn due to last Friday’s surprising report. News that Taiwan bought 65 TMT of US corn added support. Technical buying was also evident as corn works its way to the next level of resistance, which is $4.95 March.
Last week’s ethanol production report came in at 1.095 million barrels, down 7,000 barrels from the previous week. Stocks were estimated at 25.01 million barrels, up 860,000 barrels from the previous report. Gas demand dropped slightly from last week.
Corn opened Thursday’s session steady but sold off to end lower. Early selling was tied to forecasts calling for rain today in Argentina. But that rain has been delayed for a day and now forecasts are calling for rain starting tomorrow and lasting through the weekend. Amounts and coverage also decreased from yesterday’s forecast. Losses were trimmed in early trading due to a better than expected export sales estimate, as last week’s pace was at the top of expectations. News Taiwan was in and bought 135 MMT of corn overnight added support. Light selling was tied to profit taking as corn traded up to highs not seen since Dec 2023. Position squaring ahead of the long weekend was also evident. Rosario Grain trimmed their production estimate for Argentina 3 MMT to 48 MMT. Technically no damage was done to corn today.
Target $4.95 to advance sales.
March corn support is at $4.50 while resistance is at $4.95.
For the week, Mar corn was at $4.8425 up 13.75 cents. May corn was at $4.93 up 13.5 cents.