Corn started the week by opening the session lower and extended losses throughout the session. Early selling was tied to reports of decent rainfall in parts of Argentina over the weekend. Forecasts are also calling for more rain events over the next 5 days. As of Jan 24, first crop corn harvest was estimated at 10% completed vs 7% last week and vs 14% average. Second crop corn planting progress was estimated at 6% completed vs 2% last week and vs 4% average. Losses were kept in check early from reports Mexico was in and bought 139 TMT of US corn overnight. Pressure also came from today being the day that Argentina cuts their corn export tariff. Technically no damage has been done to the charts, but Friday’s lower close broke corn’s none day higher close streak.
On Tuesday corn opened the overnight session higher and like wheat continued to expand session gains throughout the night and into the day session. Early support came from an export sale of 132 TMT of US corn to South Korea. Light support also came from the quick resolution to a potential trade was with Columbia. Light support was also due too little to no rain being reported in Argentina overnight and from forecasts calling for hot conditions to remain while only hit and miss showers cross the country. Reports of more rain moving into central Brazil added support. This will delay soybean harvest and likely delay corn planting progress. Dr Cordonnier lower his corn production estimate for Argentina 1 MMT to 47 MMT. Technically corn is right back in the hunt to test its next major level of resistance, $4.95 in March.
In Wednesday’s session corn opened the session lower but shook off the early selling pressure and pushed higher through the night session and even expanded gains into the day. Early support came from Argentina’s weather forecast calling for the next 5 to 7 days to be hot and dry. Light support was due to Brazil’s weather forecast calling for rain to continue in the north, which will delay harvest and delay planting of the second corn crop. Gains were kept in check early from reports that a TX Congresswomen enter a bill to halt 45Z, which would severely impact the biofuels industry. Last week’s ethanol production was estimated at 1.015 million barrels, down a sharp 84,000 barrels from the previous week. Stocks were estimated at 25.72 million barrels, down 152,000 barrels from the previous week.
Corn opened Thursday’s session lower and extended losses throughout the night and into the day session. Early selling was tied to profit taking and technical selling as corn tested the next level of resistance, March $4.95. Tariff concerns added pressure. Feb 1 has been the date the administration has been advertising as the date they will start to apply 25% tariffs on all imported goods from Canada and Mexico and a 10% tariff on all goods from China. Losses were kept in check early in the session from concerning weather forecasts for Argentina (7 to 10 days of hot dry) while rain is expected to continue to fall in Brazil (delaying soybean harvest and corn planting). Technically no damage was done to corn today, as at this point the setback only looks like a retracement.
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 $4.82 down 4.5 cents. May corn was at $4.93 down 4.75 cents.
For the month, Mar corn was up 23.5 cents. May corn was up 27.25 cents.
Corn Weekly Comments January 31
Corn Weekly Comments January 31
Corn started the week by opening the session lower and extended losses throughout the session. Early selling was tied to reports of decent rainfall in parts of Argentina over the weekend. Forecasts are also calling for more rain events over the next 5 days. As of Jan 24, first crop corn harvest was estimated at 10% completed vs 7% last week and vs 14% average. Second crop corn planting progress was estimated at 6% completed vs 2% last week and vs 4% average. Losses were kept in check early from reports Mexico was in and bought 139 TMT of US corn overnight. Pressure also came from today being the day that Argentina cuts their corn export tariff. Technically no damage has been done to the charts, but Friday’s lower close broke corn’s none day higher close streak.
On Tuesday corn opened the overnight session higher and like wheat continued to expand session gains throughout the night and into the day session. Early support came from an export sale of 132 TMT of US corn to South Korea. Light support also came from the quick resolution to a potential trade was with Columbia. Light support was also due too little to no rain being reported in Argentina overnight and from forecasts calling for hot conditions to remain while only hit and miss showers cross the country. Reports of more rain moving into central Brazil added support. This will delay soybean harvest and likely delay corn planting progress. Dr Cordonnier lower his corn production estimate for Argentina 1 MMT to 47 MMT. Technically corn is right back in the hunt to test its next major level of resistance, $4.95 in March.
In Wednesday’s session corn opened the session lower but shook off the early selling pressure and pushed higher through the night session and even expanded gains into the day. Early support came from Argentina’s weather forecast calling for the next 5 to 7 days to be hot and dry. Light support was due to Brazil’s weather forecast calling for rain to continue in the north, which will delay harvest and delay planting of the second corn crop. Gains were kept in check early from reports that a TX Congresswomen enter a bill to halt 45Z, which would severely impact the biofuels industry. Last week’s ethanol production was estimated at 1.015 million barrels, down a sharp 84,000 barrels from the previous week. Stocks were estimated at 25.72 million barrels, down 152,000 barrels from the previous week.
Corn opened Thursday’s session lower and extended losses throughout the night and into the day session. Early selling was tied to profit taking and technical selling as corn tested the next level of resistance, March $4.95. Tariff concerns added pressure. Feb 1 has been the date the administration has been advertising as the date they will start to apply 25% tariffs on all imported goods from Canada and Mexico and a 10% tariff on all goods from China. Losses were kept in check early in the session from concerning weather forecasts for Argentina (7 to 10 days of hot dry) while rain is expected to continue to fall in Brazil (delaying soybean harvest and corn planting). Technically no damage was done to corn today, as at this point the setback only looks like a retracement.
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 $4.82 down 4.5 cents. May corn was at $4.93 down 4.75 cents.
For the month, Mar corn was up 23.5 cents. May corn was up 27.25 cents.