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Corn Market Categorizes at Explosive

April 1, 2011
 
 

This information is provided by Archer Financial Services, Inc. 800-933-3996.

Explosive is the best way to describe the corn market this week following Thursday’s March 1st Stocks and Prospective Plantings report. 
 
The week started off softer as the funds continued to get smaller with their positions.  Leading up to Thursday’s report most of the trade chatter was surrounding the potential for higher corn stocks.  This theory was based on the belief that rationing was taking place in the second quarter of the marketing year.  In addition, some in the trade felt that due to the quality of last year’s corn crop that less corn was being used due to its efficiency. 
 
Apparently neither of these scenarios occurred as the March 1st stocks were revealed at a surprisingly low of 6,523 million bushels.  This lead to limit up trading sessions to end the week as the market searches out the old highs. 
 
The question for the market will be, if no rationing took place at $7.00-$7.40 spot corn, at what price level will that occur.  Some in the trade have targeted $8.00-$8.50.  I suspect that $7.75 may start to get the job done. 
 
 Look for the market to settle down after Monday’s trade and begin its focus on weather.  The weekly ethanol data and export numbers will be monitored for signs of rationing.

 

4 1 11 Market Movement

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4 1 11 Market Price Table

 

4 1 11 COT

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