The corn market is mostly higher here this morning to start the trading week, thanks to a run-up in the bean market. The corn market continues to have trouble extending to the upside with selling above even the most modest of rallies though.
For the week, last week, March corn finished up a penny, with nearly two weeks worth of closes up or down less than 2 cents, outside of Fridays move. On the charts, corn is back to threatening last week’s high at $4.49 CH. A close above this level would open up the next target to the $4.56 price count – and then you have the $4.60 to $.63 area next – look for support back at $4.38.
Although gulf basis levels continue to firm overall corn basis levels have a weaker tone on increased producer selling and ideas that improving weather could put more bushels in the pipeline. Basis bids at the gulf are 3 higher to +81, Decatur 4 lower to +7H, Blair 1 lower to -12H.
COT report has funds short only 37,000 contracts as of last Tuesday. The March/May spread is having a difficult time widening and those waiting for a bigger carry may have to be satisfied with to 5-6 cent carry.
In Fridays action, the corn market dipped lower mid-morning, but firmed back up through the second half, as corn/bean spreads unwound. The trade was mostly quiet ahead of a long 3 day weekend for the markets. After the close, March corn was 4-3/4 cents higher at $4.45-1/4, while new crop was up 3-1/2. For the week corn was up a penny.
USDA Outlook Forum is this Thursday and Friday with 14/15 US corn, wheat and bean production estimates to be released on Friday morning. Trade looks for USDA to use record corn and bean yields as indicated by baseline data last week of 165.6 and 45.2 bpa respectively.
LaSalle Street News Top News
— Cash traders on Tuesday suggested 30,000 mt of likely Black Sea origin Corn was bought by Libya in a snap tender that closed Tuesday, the grain was reportedly sold for $243/mt
— Cargill announced Friday it would not accept and would reject Corn containing Syngenta’s new GMO trait
— Report from FranceAgriMer Friday estimated the country’s Barley crop was 74% in good to excellent condition compared to the 67% in the year ago period.
— On Monday the French gov’t announced new rules to prevent planting of GM corn and will work to change EU laws to ensure a long term ban on planting GM crops.
— Kazakhstan’s stats bureau on Tuesday pegged 2013 grain harvest at 18.2 mln mt revised downward by -800,000 mt, but an ag ministry official still sees 2013/14 exports around 9 mln mt compared to the 7.1 mln mt last season.
— USDA Outlook meeting this week will release planting and supply and demand numbers Thursday and Friday.
— Manitoba Pork Council noted regional hog farm has had samples sent for testing for suspected case of PED virus which if confirmed would be the province’s first case. Other cases have previously been reported in Ontario province in recent weeks.
— Liffe Paris March corn futures trading Tuesday’s session unchanged at 173.25 euros/mt
— Dalian May corn futures on Tuesday rose +2 yuan ending the session at 2,342 yuan/mt
— Weather: 6-10 Day forecast: Normal to Above Temps. Normal to Above Precip
— Outside markets. Crude Oil +73c @ $101.03; Gold off -$4.50 @ $1314.10 $ ; Silver off -1.1c @ $21.05 ; US $ index up 3 pts @ 80.21
LaSalle Street News Cash Markets
— CIF Corn steady up 3. Feb. +81 to +85, FH Mar. +78 to +81, Mar. +75 to +78, Apr. +70 to +72, Apr/May +69 to +72, J/J +64 to +69