Corn Report, 04/07/2016

Thursday, April 7, 2016

Corn firmer overnight on continued recovery from the March 31st reports. Adding to underlying support is end user demand despite light farmer sales. Mississippi and Alabama significantly behind normal planting pace and may see some switching of corn to soybeans. 6-10 day weather forecasts continue the active weather pattern, wetter and cooler than normal. Also lending some underlying support was a reputable weather forecast for warmer and dryer July/August for the Midwest. May/July now trading only 2 3/4 cents on nearby demand and lack of stocks along the delivery system. Another indirect factor being the soybean/corn ratio of a historically high 2.50/1 keeping corn supported as soy oil (and soybeans) rallies due to global vegetable oil shortage. US ethanol production slipping for the 3rd consecutive week, to less than 980,000 bpd, yet the year-to-date production running well above last year implying additional corn usage. Yearly US corn ground for ethanol calculated at nearly 85 mbu more than last year, however, sorghum likely filling the gap, as Chinese imports of US sorghum (corn and DDG’s) come to a halt. Technically, May futures are up against resistance at 3.60 as of this writing, with initial support at 3.54. On a monthly long-term chart, nearby May corn was unable to break the pivotal 3.50 area on bearish fundamentals last week.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

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