Corn futures are steady to 4 cents lower this morning. After having rallied more than 1% through midday, the front month corn futures complex faded into the close. For March it was enough to end Tuesday a penny in the red at $6.20/bu – still up 34 3/4 cents from the Jan 14th low. Cash sources cited increased farmer selling as prices hit the 50% retracement on the weekly continuation charts. The other front months held on to 1 to 3 1/2 cent gains. Preliminary open interest surged 21,976 contracts, confirming the cash market rumors. December 2022 and later futures were much stronger amid a continuing multi-commodity competition for 2022 US acreage.
The national average corn basis from cmdtyView was 14 cents under March yesterday vs. minus 22 cents last year. The ECB basis is 5 cents weaker than last year at -20 cents, while the WCB basis is -12.5 cents compared to -27.5 cents last year.
Ukraine still has about 19 MMT of corn to ship if it is to meet the USDA’s projection for the full marketing year (Sept-Aug based). The wheat /corn spread in the US has widened back to nearly $2/bu on the board from $1.45 two weeks ago. On the cash side, national average SRW prices are $1.67 above corn while HRW is a $1.81 premium.
Mar 22 Corn closed at $6.20, down 1 cent, down 4 this morning
Nearby Cash was $6.06 on Tuesday, down 1 cents,
May 22 Corn closed at $6.18 1/2, up 1 cent, down 3 this morning
Dec 22 Corn closed at $5.69 3/4, up 2 1/4 cents, down ¼ this morning
New Crop Cash was $5.53 7/8 on Tuesday, up 2 1/8 cents,
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