Dec Corn closed ½ cent higher ($3.75 ¾), March ¾ cent higher ($3.84 ¾) & July ¾ cent higher ($3.96 ½)
December Chgo Ethanol closed 0.009 cents a gallon higher ($1.421) & Jan $0.014 cents higher ($1.401)
Weekly Corn Export Sales – old crop vs. 400-800 K T. expected – new crop vs. none expected
It was another “nothing” trade day in the US corn futures; barely a 3 cent range. Attitudes are the crop will continue to shrink as we move forward but then again demand continues to be severely wanting; offsetting issues. What is out there that will change this scenario? SA and/or Ukraine needs to slow down their exports. SA may slow down their exports as we move into January (last year’s supply becoming exhausted) but there is no telling when Ukraine will run out.
The interior corn basis continues show a firm undertone mostly form slow movement. The Gulf eases on its midday posting but still looking rather strong. Upfront corn spreads saw some fractional easing. The current crop year continues to lose to the new crop which has been the case since mid-October.
The last 4 days has Dec corn trading in a 5 ½ cent range. It’s hard to do anything with price action this tight. Granted we feel there is good support just under the market but just because we see support does not mean the market is ready to rally. Cash markets (basis) are strong but all it is doing is offsetting the slack looking futures market. To turn the market higher we need a healthy shot of exports. When that happens remains to be seen.
Daily Support & Resistance for 11/15
Dec Corn: $3.71 – $3.80
March Corn: $3.80 – $3.89
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.