Sept Corn closed 2 ¾ cents higher ($3.10 ½), Dec 2 ¼ cents higher ($3.23) & March 2 cents higher ($3.34 ¾)
Sept Chgo Ethanol closed $0.060 cents a gallon higher ($1.180), Oct $0.060 higher ($1.179)
Weekly Corn Export Inspections – 1.150 M T. vs. 600 K – 1.000 M T. expected
US Corn Crop Ratings – 71% GE (-1%) vs. 72% expected vs. 57% year ago – Silking – 97% vs. 95% 5-year average – Dough Stage – 59% vs. 52% 5-year average – Dented – 11% vs. 12% 5-year average
Strong looking weekly corn export inspections and a slight hike in the Gulf export basis prompted some minor short covering on Monday. There is also speculation that we will see additional corn sales to China as we move through the week ahead of the scheduled trade talks this coming weekend. There is still some talk about the dry pockets in the eastern Corn Belt as well as western Iowa. Forecasts for the week suggest that many of these dry areas will see some relief.
On Wednesday the USDA will give us their first filed survey of the season as to crop size. Most are anticipating a hike in yield of 2-3 bu. bpa. The bigger question is what can the USDA do with the demand side of the equation in an effort to offset some of the hike in yield.
Flat price corn lingers just above recent contract lows. Modest amounts of short covering ahead of Wednesday’s USDA data should not be ruled out. $3.26 is the first level of minor resistance followed by better resistance in the mid-low $3.30’s.
Daily Support & Resistance – 8/11
Sept Corn: $3.07 ½ – $3.13 ½
Dec Corn: $3.20 – $3.26
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