With dryness in Argentina for the next week or so, there is uncertainty for the Brazil crop and more and more talk of smaller planted area for the US; the market seems to be in position to make a turn back higher. Early strength yesterday was tied to disappointing weekend rains in Argentina with a dry forecast for the next 7-10 days. Many are getting the feeling that the rains may be a little too late with estimates starting to slip below 30.0 million tonnes. Chinese corn imports in February reached just 102,600 tonnes, down 28% from last year and down 392,200 tonnes in January. However, China imported the most ethanol in February since May of 2016. China’s shift to a 10% ethanol mix means their corn usage could increase 24-29 million tonnes by 2020. With planting intentions and March 1 stock report on Thursday, some traders will move to the sidelines. Resistance comes in at 377 and 382 with support at 370 and 367.
Corn May ’18 Daily Chart