Corn demand remains tight

The newest USDA World Agricultural Supply and Demand Estimates (WASDE), which were issued last week, indicate that the demand for corn is still declining and is particularly concerning at this point due to the avian flu, a reduction in beef cattle rearing, and a decline in corn exports.

In terms of the US corn projection for 2022/23, exports were down 75 million bushels this month, reflecting the present weak sales and shipments. Notwithstanding the fact that corn prices in the United States are fairly competitive. Corn stockpiles in the United States were recently at 1.342 billion bushels, up 75 million bushels from the previous month due to no significant implementation adjustments, and exceeding export projections of 1.305 billion bushels. While producers' average seasonal corn price declined 10 cents to $6.60 per bushel.

World corn or coarse grain output is anticipated to decrease by 3.2 million metric tons to 1,439.6 million metric tons in 2022/23. The trend of coarse grains from abroad this month showed that production, consumption, and corn stockpiles were lower than the previous month. India's corn production has increased, while Argentina's corn production has decreased, but this has been partially offset by rising output in India and Paraguay. The drop in Argentine output was caused by persistent heat and drought in February and early March, which reduced the yield of late-planted corn.

Key global trade changes for 2022/23 include corn exports that are expected to rise in India, Ukraine and Paraguay, and decline in Argentina and the United States, while corn imports declined in Turkey, Iran, Malaysia, Chile, Colombia, Egypt, Morocco, Peru and Taiwan.

Corn inventories overseas declined in comparison to the previous month, owing to lower inventories in Ukraine and Brazil, which were largely offset by rising inventories in India. The most recent global corn stockpiles were 296.5 million metric tons, an increase of 1.2 million metric tons.

Corn futures prices rose due to technical and fund purchases. China recently acquired 612,000 metric tons of US corn, the highest US sale in months, and China's biggest purchase of US corn in over a year. Previously, one of the primary causes of the sales slowdown in this market year was a lack of demand from China.

Data for Technical Analysis (1H)

Resistance : 628.76, 629.02, 629.45

Support : 627.90, 627.64, 627.21       

1H Outlook

Source: Investing.com                                           

Buy/Long 1 If the support at the price range 627.82 - 627.90 is touched, but the support at 627.90 cannot be broken, the TP may be set around 628.78 and the SL around 627.78, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 628.76 - 628.84, TP may be set around 629.35 and SL around 627.85, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 628.76 - 628.84 is touched, but the resistance at 628.76 cannot be broken, the TP may be set around 627.70 and the SL around 628.88, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 627.82 - 627.90, TP may be set around 627.45 and SL around 628.80, or up to the risk appetite.       

Pivot Points Mar 15, 2023 03:17AM GMT

Sources: Brownfield Ag News, Successful Farming