Sinograin, China’s state grain stockpile sold all 26,719 tonnes of corn offered in the first sale of 2018.  The grain was from the 2014 harvest and is the first sale since October.  Originally the state auctions were to restart in May, but demand from feed mills and processors has been robust.  March corn settled down 4 cents at 347 ¼ on Monday.  The market traded down to a low of 346 ¾, just ¼ cent from the contract low.  Corn was pressured by forecasts of increased rain potential in Argentina as well as the possibility of an increase in US ending stocks in this Friday’s report due to reduced exports.

The US November corn exports were seen at 2.59 million tonnes, down 35.9 from last year’s 4.04 million tonnes.  Large declines from Japan, South Korea, and Taiwan were seen with Mexico’s imports up 5.3%.  US exporters announced the sale of 102,100 tonnes of corn to Mexico yesterday.  Monday’s weekly export inspections for corn came in at 849,226 tonnes. 

With Argentine dryness issues starting to decline and Friday’s USDA report expected to show burdensome supplies, the bear camp has taken control.  The market traded within a ¼ cent of the contract low of 346 ½ yesterday.  A close below this level will likely extend down to the swing low of 343 ¼.  The ultimate target for the bears should be around 335.

Corn May ’18 Daily Chart