Corn Commentary

John WalshGeneral Commentary, Grains

Commentary: The corn market did a good job today closing higher. I say this because it looks as though the funds sold up to 2000 contracts on the day. The big talk today is that a large ethanol producer shuttered today for a bit. This is an ongoing trend and is of concern to the corn demand story. In addition, the export pace remains 25% lower year on year. Perhaps the market is saying for now at these levels much is baked in the cake. If so, the May contract low of 332 could hold. The USDA will most likely not make any changes to acreage estimates for 30-90 days. This leaves the analysts with a say till then. The general thought is there are some switches. A rally in beans to 9.00 plus could add fuel to this fire. There are positives as well. The animal numbers are on the rise for better or worse. This ensures solid feed demand. In addition, an additional 1.5 million tons of corn demand from China would go a long way at present. Use 332 as a out basis the May. Look to keep the upside open for now. A close below this critical level and the market could seek lower levels.

Trade Suggestion(s)
NA today
Options –

John J. Walsh
President, Walsh Trading, Inc.

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