July Corn expired ¾ cent higher ($3.34 ¾), Sept closed 2 ¾ cents lower ($3.26) & Dec 2 ¾ cents lower ($3.33 ¾)
August Chgo Ethanol closed $0.097 cents a gallon lower ($1.233), Sept $0.097 cents lower ($1.198)
USDA announces 1.762 M T. of new crop corn sold to China – I believe this is the biggest ever “announced” sale to them
It was not a very inspiring trade in the corn market today considering the USDA announced the biggest ever one day corn sale to China. We’ve had bigger one day sale announcements before but not to China. The continued threat of beneficial weather for a good part of the Corn Belt over the near term has many thinking we will see a higher yield come August. There is the call for heat to rebuild into the weekend and early next week that will feature scattered rainfall. For what it’s worth I’m hearing the two most used weather models, the American and the European, are not in any agreement. The European model is suggesting heat and limited rainfall while the American is not as warm with near general rainfall. Last but not least – ethanol gagging nearly 10 cents a gallon did not help.
The interior Midwestern cash corn market reads steady to better. The break in the flat price has once again shut down producer sales. The Gulf basis for corn has a steady to slightly higher bias. Corn spreads were mixed on the day as the Sept/Dec was steady while March loses to its deferred.
As I mentioned earlier the price action was not very inspiring as attempts to just hold steady gave way late. $3.30 to $3.25 is the only remaining technical support for the December contract. We need to see closes above the $3.40 level just to steady things up.
Daily Support & Resistance – 7/15
Sept Corn: $3.21 – $3.31
Dec Corn $3.29 – $3.39
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