Content ID

268583

Corn Demand Stays Strong

Ethanol's demand woes slow.

Corn exports beat expectations again, this week, coming in at 1.626 million metric tons. This is a solid week for demand reports, again.

Ethanol broke a long streak of disappointing reports, while exports continue to offer weekly support. As a whole, it was another calm day of price movement with most of the volume coming from rolling positions out of March.

Corn might have also remained calm waiting to see if there would be any large scale price influence from beans which is possible Sunday night and Monday. That influence could be large enough that corn traders should likely watch those weather maps at all.

We want to be careful not to expect much influence from Argentina's corn production, but even more from how our beans could react to start next week.

For early next week, the weather maps along with the uptrend line in May corn should be the top two factors to keep focus on. If that trend line is broken, it would not immediately suggest a large setback in corn but it would leave next technical support down at 364 1/4.

Bulls
    •    Exports at 1626K continues the strong streak of export sales reports
    •    This is the first week in 7 where both weekly demand reports suggest support
    •    Bulls will want to look for beans to continue higher in order to keep offering spill over support to corn
Bears
    •    The quickest path to corn moving lower would be to see rain in the ARG forecast causing double digit losses in beans that spills over to corn
    •    Bears will want to see the uptrend line taken out to suggest a technical pullback to at least 364 1/4.

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Rich Nelson Allendale Inc. 815-578-6161
This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
 
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