Corn Weekly Comments March 28

Corn Weekly Comments March 28

Corn started the week by opening the overnight session lower and continued to trade with small losses throughout the night. Early selling was tied to spill over pressure from the overall softer tone to the grains. It seems at this point corn is a follower as traders are waiting for USDA reports for direction. Reports of good weekend rains added pressure as most of the western and central Corn Belt reported seeing 1 to 2 inches of moisture over the weekend. As of March 22, Brazil’s first crop corn harvest was estimated at 58% complete vs 54% last week and 58% average. Planting of the second corn crop was estimated at 97% complete vs 93% last week, and 94% average. Rosario Grain is estimating Argentina’s harvest activity at 11% complete vs 10% average. Position squaring ahead of Thursday’s reports was also evident.

In Tuesday’s session corn opened the overnight session lower and continued to trade with minor losses throughout the night. Selling pressure picked up once the day session started with additional pressure spilling over from the other grains. The lack of news added to the selling pressure in corn as traders seem reluctant to take a side ahead of USDA’s upcoming reports. USDA could surprise the corn market with their numbers on Thursday and few traders are willing to take a side before the numbers are released.

Corn opened lower and traded in a tight range overnight, but losses accelerated in Wednesday’s day session and the market closed lower. Positioning ahead of tomorrow’s reports was the main driver in the market today. March 1 stocks are expected to be the highest in 5 years while planted acres looks to be about 3 million lower than last year. Technical selling pulled corn lower. Last week’s ethanol report showed an 8,000 barrels per day increase in production to 1.054 million barrels per day. Stocks also increased by 83,000 barrels to 26.092 billion barrels. Gas demand fell to a 4-week low.

Support for May corn is at $4.397 while resistance is at $4.50.

TX is reporting corn planting progress at 46% complete vs 34% last week and 43% average.

For the week, May corn was at $4.42 up 2.75 cents. July corn was at $4.545 up 2.5 cents.

For the month, May corn was up 12.5 cents. July corn was up 13.25 cents.