The corn market was lower on Wednesday after the bearish USDA report and pressure from the wheat market. The July and December contracts closed down about 3-4 cents which was near the lows of the day on a wild day. The corn market opened lower and traded as much as 5-6 lower, but rallied to trade higher 1-2 as the soybeans rallied, but it eventually drifted lower and traded 3-5 lower most of the day. The USDA report certainly didn’t have any bullish news in yesterday’s report, but as one farmer told me, we are a far way from getting any corn planted and until the planters start rolling, it will be hard to really break the corn market. The USDA dropped exports aggressively which was a surprise as the market was looking for a smaller reduction. The market will gain some support from wet weather we are experiencing across the Midwest right now, but the forecast has it getting drier over the next week or so. The volume was good at 276,000 and funds were sellers of 6,000 contracts.

Overnight, the corn market was slightly lower as soybeans went lower and the outside markets were slightly negative. With the USDA report behind us, traders will now continue to look at the weather forecasts and the outside markets for direction as they await the USDA planting intention report at the end of the month. The export sales this morning were lower than expected, but more importantly were the cancellations in soybeans, meal, and soyoil which could push those markets lower and drag the rest of the grain complex lower. There isn’t a lot of bullish news out right now, except for the wet ground, but there it plenty of time to get corn planted. We are starting to see farmers in the south and southeast get into the fields this week and start planting corn. It will be an interesting day today as the export sales for corn and soybeans weren’t good and it should weigh on the grain markets. The outside markets are mixed, but those markets were positive earlier this morning, so those could weigh on the grain complex. Technically, corn looks negative and could roll over and take out the February lows. Corn will be called 1-2 lower but it could be 2-4 by the time the market opens.

Globex Overnight Contract Last Net Change High Low Volume ZCH10 355^0 -0^4 357^6 355^0 1162 ZCK10 364^4 -1^0 368^0 364^4 6630 ZCN10 375^6 -0^6 378^6 375^4 3211 ZCU10 385^0 -0^4 388^0 385^0 2309

Early Opening Calls: steady, off 1-2 cents

 

Cash Markets -- CIF Corn steady. Mar. +34 to +36, April +37 to +38, May +40 to +43, June +35 to +38, July +39 to +41, Oct. +41 to +43, Nov. +41 to +43, Jan. +36 to +38

TREND: Corn and wheat broke into a test of major support at 3.60 CK and 5.00 WN. Look for the markets to bounce around some before taking those levels out. They will come out. Still a willing seller of small rallies here.

Futures trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future trading results. Trading commentary and analysis is based on information taken from trade and statistical services, news services, and other sources which we believe to be reliable. We do NOT warrant that such information is accurate or complete, and it should NOT be relied upon as such. Our policy is to publish market research that is objective, clear, fair, and not misleading. Trading commentary and analysis reflects our good faith judgment at a specific time and is subject to change without notice. There is no assurance that the advice we give will result in profitable trades. All trading decisions will be made on a strictly unsolicited basis by the account holder.