Sept Corn closed 9 ¼ cents lower ($3.08 ¼), Dec 8 ¼ cents lower ($3.20 ¼) & March 8 cents lower ($3.32 ¼)
August Chgo Ethanol closed $0.020 cents a gallon lower ($1.150), Sept $0.020 lower ($1.090)
Corn crop ratings stay solid at 72% GE. Weather forecasts offer nothing threatening to crop development. Ukraine raises corn crop forecast to an all-time high of 38.9 M T. Stone X (former FC Stone) suggests US corn yield at 182.4 bpa which would equate to a 15.321 billion bu. crop size (15.000 billion in July). The end result of all this was new contract lows, new contract low closes.
For the most part the interior Midwestern corn basis is on the defensive. I see only two locations bucking this trend; Cedar Rapids, IA and Linden, IN. I have to think the producer is moving his old crop as he is seeing successful pollination for his new crop. The Gulf basis continues to be on the defensive as well; down 10-12 cents in one week’s time. Needless to say spreads are under considerable pressure.
Weekly corn charts appear destined to check out the May 2020 and the September 2016 low at $3.00. The question now becomes how fast will we get there as the lead contract, September, is only 8 ½ cents away. Another day like today and we’ll be there tomorrow.
Daily Support & Resistance – 8/05
Sept Corn: ??? – $3.12
Dec Corn: ??? – $3.24
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