To start the week corn opened the night session lower but managed to trade close to unchanged throughout the overnight session. Early activity had corn in a tug of war with the stronger wheat complex supporting corn while the lower soybeans pressured corn. But once the day session started, corn pushed higher with most of the strength tied to strong demand and expectations USDA will have to increase demand in their monthly Crop Production estimate. An escalation in the war between Ukraine and Russia added support. A sharply higher crude oil market and lower US dollar added support. Technically today’s close was friendly as Dec corn managed to close above the $4.25 resistance (which had been strong support up until last week). China estimated their corn imports for Oct at 250 TMT down from 2.04 MMT last year at this time. This is the lowest monthly amount of corn China has imported into country in 5 years.
On Tuesday corn opened the overnight session lower but shook off the early selling pressure and pushed higher to post good gains by the end of the night session. Early selling was tied to improving conditions in SA as soybean planting progress has rapidly advanced after its slow start and is now ahead of its long-term average pace, which should result in no delays for the second corn crop. Losses were trimmed early by spillover support from the higher wheat complex. But the lack of news and pressure from a lower soybean complex pulled corn lower late in the session. Technically corn was able to stay above Dec $4.25 support.
In Wednesday’s session corn opened the overnight session lower and like wheat, extended session losses throughout the overnight session. Early selling was tied to profit taking and position squaring as corn seems to have just run out of news to give traders direction. A stronger US dollar added pressure early. Reports that China and Brazil’s leaders are going to meet today to talk about trade relations moving forward added pressure. Rumors that Brazil has said they are more than willing to pick up the slack from lost US imports kept traders on their toes early. But once the day session started corn started to firm and slowly and methodically push higher. Strong demand and expectations that USDA will lower corn stocks in their next crop production report (due to strong exports) helped support corn.
Last week’s ethanol production was estimated at 1.11 million barrels, down 3,000 barrels from the previous week. Stocks were estimated at 22.56 million barrels, up 524,000 barrels from the previous week. Gas demand dropped significantly this week, pushing demand to the bottom of the 5-year average. Ethanol production remains solidly above last year.
Corn opened the overnight session lower, firmed to trade with gains in the overnight, but faded back lower once Thursday’s day session started. Profit taking and the lack of new flash export sales pressure corn early. A higher US dollar added selling pressure. But corn brushed off the early selling and pushed higher with support spilling over from the higher wheat complex. The escalation in the Black Sea war added light support, but most of the strength was due to a report from Reuters stating the oil and gas companies are starting to ramp up their investments in biofuels, with most focusing on SAF. Gains were trimmed once the day session started with pressure spilling over from the losses from the other grains as well as from news that China and Brazil have struck a deal for Brazil to start exporting sorghum to China. The US is the largest exporter of sorghum in the world and out biggest customer is China. Technically corn remains above support.
Target $4.35 Dec to advance sales.
Dec corn support is at $3.95 while resistance is at $4.35.
For the week, Dec corn was at $4.255 up 1.5 cents. March corn was at unchanged $4.3525.
Corn Weekly Comments Nov 22
Corn Weekly Comments Nov 22
To start the week corn opened the night session lower but managed to trade close to unchanged throughout the overnight session. Early activity had corn in a tug of war with the stronger wheat complex supporting corn while the lower soybeans pressured corn. But once the day session started, corn pushed higher with most of the strength tied to strong demand and expectations USDA will have to increase demand in their monthly Crop Production estimate. An escalation in the war between Ukraine and Russia added support. A sharply higher crude oil market and lower US dollar added support. Technically today’s close was friendly as Dec corn managed to close above the $4.25 resistance (which had been strong support up until last week). China estimated their corn imports for Oct at 250 TMT down from 2.04 MMT last year at this time. This is the lowest monthly amount of corn China has imported into country in 5 years.
On Tuesday corn opened the overnight session lower but shook off the early selling pressure and pushed higher to post good gains by the end of the night session. Early selling was tied to improving conditions in SA as soybean planting progress has rapidly advanced after its slow start and is now ahead of its long-term average pace, which should result in no delays for the second corn crop. Losses were trimmed early by spillover support from the higher wheat complex. But the lack of news and pressure from a lower soybean complex pulled corn lower late in the session. Technically corn was able to stay above Dec $4.25 support.
In Wednesday’s session corn opened the overnight session lower and like wheat, extended session losses throughout the overnight session. Early selling was tied to profit taking and position squaring as corn seems to have just run out of news to give traders direction. A stronger US dollar added pressure early. Reports that China and Brazil’s leaders are going to meet today to talk about trade relations moving forward added pressure. Rumors that Brazil has said they are more than willing to pick up the slack from lost US imports kept traders on their toes early. But once the day session started corn started to firm and slowly and methodically push higher. Strong demand and expectations that USDA will lower corn stocks in their next crop production report (due to strong exports) helped support corn.
Last week’s ethanol production was estimated at 1.11 million barrels, down 3,000 barrels from the previous week. Stocks were estimated at 22.56 million barrels, up 524,000 barrels from the previous week. Gas demand dropped significantly this week, pushing demand to the bottom of the 5-year average. Ethanol production remains solidly above last year.
Corn opened the overnight session lower, firmed to trade with gains in the overnight, but faded back lower once Thursday’s day session started. Profit taking and the lack of new flash export sales pressure corn early. A higher US dollar added selling pressure. But corn brushed off the early selling and pushed higher with support spilling over from the higher wheat complex. The escalation in the Black Sea war added light support, but most of the strength was due to a report from Reuters stating the oil and gas companies are starting to ramp up their investments in biofuels, with most focusing on SAF. Gains were trimmed once the day session started with pressure spilling over from the losses from the other grains as well as from news that China and Brazil have struck a deal for Brazil to start exporting sorghum to China. The US is the largest exporter of sorghum in the world and out biggest customer is China. Technically corn remains above support.
Target $4.35 Dec to advance sales.
Dec corn support is at $3.95 while resistance is at $4.35.
For the week, Dec corn was at $4.255 up 1.5 cents. March corn was at unchanged $4.3525.