Sept Corn closed 6 ½ cents lower ($5.58 ¼), Dec 5 ¼ cents lower ($5.63 ½) & March 5 ¼ cents lower ($5.71)
The downgrade to the corn crop in yesterday afternoon’s condition report was expected to bring a boost to the flat price. All it was good for was firmer prices in the night session that gave way to lower prices in the day session. The first leg of the ProFarmer tour gave us mixed results; the Ohio corn yield at 185.3 bpa vs. the USDA at 193 and the S. Dakota yield 151.45 vs. the USDA at 133. In defense of the USDA S. Dakota yield the ProFarmer tour was mostly in the eastern side of the state where the best yields are; not really indicative of the entire state as the further west one goes the worse it is. I do think the strength of the US Dollar as well as the sharp weakness in the wheat market added to today’s soft looking performance.
So here we have another higher opening that fails to hold. The daily chart configuration suggests a downflag with the best looking support down towards the mid-low $5.50’s. I’m not sure the ProFarmer tour is going to give us much to hang our hats since the USDA came in so low with its national yield other than the USDA possibly being too low with its yield projections. For the time being I’m not looking for much other than some choppy almost directionless trading.
Daily Support & Resistance – 08/18
Dec Corn: $5.58 – $5.74
March Corn: $5.65 – $5.82
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.