Commentary
The bull camp in corn got some encouraging news in my opinion as US border patrol opened the two railway crossings into Mexico. The closures backed up train cars in 6 states. The backlog should clear up quickly per the railroad execs. US corn origin continues to hold the better position on the world stage in corn offers versus Brazil. Brazilian values are currently showing a $12-$13 per metric ton premium to US FOB. World demand has been slow to show up for the competitive US corn offers. Inspections though are coming in better. 1.08 million metric tons or 42.6 million bushels were released for inspection last week versus the 10-week average of 26.2 million bushels. The inspections to date match USDA expectations for the 23/24 marketing year. Weather worries continue regarding Brazilian production. While needed rains have shown up in recent weeks in parts of Central North Brazil. The Central West areas continue to miss out. Beans and meal are holding support while corn is sup slightly in this holiday shortened week. A report from the Rosario Stock Exchange details that grain production for the 2023-24 cycle is estimated at around 137 million tons, supported by weather recovery after the last three droughts. Longer term it seems for now that whatever Brazil misses out on regarding production, Argentina maybe ready to make up for any losses. U.S. led efforts to enhance security against attacks on vessels are giving transporters confidence to increase the number of vessels sent into the Red Sea following a string of attacks on civilian ships. Shipping giant Maersk has announced preparations to resume shipments in the Red Sea and Gulf of Aden. Technical levels come in as follows for the remainder of the week. Support is 4.73 and then 4.68. A close under 4.68 which is the November low on this contract and its katy bar the door to 4.53. Resistance is 483, A close over clears the way for a rally to 4.97.
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