Dec Corn closed ¾ cent lower ($3.90), March ¾ cent lower ($3.98 ¾) & July ½ cent lower ($4.10)
November Chgo Ethanol closed $0.021 cents a gallon higher ($1.432) & Dec $0.021 cents higher ($1.431)
Weekly Corn Export Sales – 549.1 K T. old crop vs. 300-800 K T. expected – no new crop vs. none expected
Weekly corn export sales were deemed no big deal as they were barely above midrange of expectations. Weatherheads are suggesting that the recently poor harvesting conditions will show marked improvement as we move into the first half of November. Overnight there was chatter out of China that there is doubt as to the success of making any “long term” trade deal with the US. The other side of that is that both sides agree to the idea they are working towards the success of the “Phase 1” deal. The bottomline to Thursday’s trade was that the rally on Wednesday and Tuesday’s suggested upside reversal was given a severe test and it passed with flying colors.
Interior cash corn markets (basis) continue with the recent higher trend. The rate of gain appears to be slowing a bit. The Gulf stays firm. Corn spreads took a hit early in the session but as the flat price came back so did the spreads.
Just my opinion – I thought today’s corn trade was quite supportive looking despite finishing fractionally lower. At one time in the early going Dec corn was down as much as 6 cents. To finish just fractionally lower suggests the potential for testing the high side of the trading range idea remains intact.
Daily Support & Resistance for 11/01
Dec Corn: $3.86 ½ – $3.95
March Corn: $3.95 ½ – $4.04
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.