Corn started the week by opening the overnight session lower but quickly recovered to trade higher. Early support spilled over from the other grains as all of the grains found support early in the session. Early selling was tied to harvest pressure as it appears the recent hot dry conditions have helped to push the corn crop to maturity. Reports of disappointing yields helped to give corn support, but most of the strength spilled over from the higher soybean and wheat complex. As of Sept 20, Brazil was reporting first crop corn planting progress at 23% complete vs 16% last week, and vs 27% average. News that the Bank of China lowered bank reserve requirements added support. This will allow for banks to lend more money to consumers, which in turn should help stimulate their economy. After the close USDA continues to show 4 states lagging behind in crop development. The states behind in dent are CO (7%), MN (7%), ND (10%), and PA (5%).
In Tuesday’s session corn opened lower in the overnight session but turned to post small gains by the time the night session was drawing to a close. Early selling was tied to Monday afternoon’s Crop Progress report, which showed a corn crop that continues to remain far ahead of its average crop development stage in some states, but far behind in the states in the Northern Plains and western Corn Belt. Losses were trimmed by continued reports of disappointing yields as harvest advances. Buying kicked into high gear once the day session started with support spilling over from the higher soybean complex, which rallied off of friendly Chinese news. Weather concerns in Brazil added support. But once wheat started to fade, the selling pressure spilled over to pull corn off of its highs. Technically no damage was down to the corn market, but corn did trade to major resistance which triggered sell stops.
On Wednesday corn opened the overnight session steady but slipped to trade with small losses throughout most of the night session. Early selling was tied to profit taking and hedge selling pressure as forecasts in the US are now calling for warm dry conditions for the next 15 days. But buying returned to the corn market once the day session started with support coming from news that Mexico was in and bought 180 TMT of US corn overnight. Light support spilled over from the stronger soybeans complex. Although Wednesday’s session did not have the grains posting strong gains, it was impressive as not only did the grains pull themselves up from a lower start, but they are staging a solid rally while harvest is advancing.
Last week’s ethanol production was estimated at 994,000 barrels, a 55,000-barrel decline from the previous week and a 20-week low. Stocks were estimated at 23.52 million a decline of 261,000 barrels from the previous week. Gas demand increased sharply and is now up against the top of the 5-year average.
In Thursday’s session corn started the overnight session lower and continued to trade with small losses throughout the night. Early selling was tied to hedge selling pressure as harvest continues to advance. Losses were trimmed once the day session got under way due to reports of another export sale of 115 TMT of corn to Mexico. Weather concerns in SA added support as hot and dry conditions are expected to remain in Brazil for the next two weeks. BAGE is now estimating Argentina corn production at 47 MMT vs USDA projection of 51 MMT. They are also estimating acreage to drop 20% from last year due to the leaf hopper infestation. But corn faded its gains late in the day with selling tied to heavy hedge pressure as forecast in the US shows little to slow down harvest. Spill over pressure came from soybeans and wheat as both those markets turned lower late in the session.
Target $4.35 Dec to advance sales.
Dec corn support is at $3.90 while resistance is at $4.25.
For the week, Dec corn was at $4.18 up 16.25 cents. March corn was at $4.35 up 15.0 cents.
Corn Weekly Comments Sept 27
Corn Weekly Comments Sept 27
Corn started the week by opening the overnight session lower but quickly recovered to trade higher. Early support spilled over from the other grains as all of the grains found support early in the session. Early selling was tied to harvest pressure as it appears the recent hot dry conditions have helped to push the corn crop to maturity. Reports of disappointing yields helped to give corn support, but most of the strength spilled over from the higher soybean and wheat complex. As of Sept 20, Brazil was reporting first crop corn planting progress at 23% complete vs 16% last week, and vs 27% average. News that the Bank of China lowered bank reserve requirements added support. This will allow for banks to lend more money to consumers, which in turn should help stimulate their economy. After the close USDA continues to show 4 states lagging behind in crop development. The states behind in dent are CO (7%), MN (7%), ND (10%), and PA (5%).
In Tuesday’s session corn opened lower in the overnight session but turned to post small gains by the time the night session was drawing to a close. Early selling was tied to Monday afternoon’s Crop Progress report, which showed a corn crop that continues to remain far ahead of its average crop development stage in some states, but far behind in the states in the Northern Plains and western Corn Belt. Losses were trimmed by continued reports of disappointing yields as harvest advances. Buying kicked into high gear once the day session started with support spilling over from the higher soybean complex, which rallied off of friendly Chinese news. Weather concerns in Brazil added support. But once wheat started to fade, the selling pressure spilled over to pull corn off of its highs. Technically no damage was down to the corn market, but corn did trade to major resistance which triggered sell stops.
On Wednesday corn opened the overnight session steady but slipped to trade with small losses throughout most of the night session. Early selling was tied to profit taking and hedge selling pressure as forecasts in the US are now calling for warm dry conditions for the next 15 days. But buying returned to the corn market once the day session started with support coming from news that Mexico was in and bought 180 TMT of US corn overnight. Light support spilled over from the stronger soybeans complex. Although Wednesday’s session did not have the grains posting strong gains, it was impressive as not only did the grains pull themselves up from a lower start, but they are staging a solid rally while harvest is advancing.
Last week’s ethanol production was estimated at 994,000 barrels, a 55,000-barrel decline from the previous week and a 20-week low. Stocks were estimated at 23.52 million a decline of 261,000 barrels from the previous week. Gas demand increased sharply and is now up against the top of the 5-year average.
In Thursday’s session corn started the overnight session lower and continued to trade with small losses throughout the night. Early selling was tied to hedge selling pressure as harvest continues to advance. Losses were trimmed once the day session got under way due to reports of another export sale of 115 TMT of corn to Mexico. Weather concerns in SA added support as hot and dry conditions are expected to remain in Brazil for the next two weeks. BAGE is now estimating Argentina corn production at 47 MMT vs USDA projection of 51 MMT. They are also estimating acreage to drop 20% from last year due to the leaf hopper infestation. But corn faded its gains late in the day with selling tied to heavy hedge pressure as forecast in the US shows little to slow down harvest. Spill over pressure came from soybeans and wheat as both those markets turned lower late in the session.
Target $4.35 Dec to advance sales.
Dec corn support is at $3.90 while resistance is at $4.25.
For the week, Dec corn was at $4.18 up 16.25 cents. March corn was at $4.35 up 15.0 cents.