Sept Corn closed 10 ¾ cents higher ($3.25 ¼), Dec 11 ½ cents higher ($3.38 ¾) & March 11 cents higher ($3.49 ¾)
Sept Chgo Ethanol closed unchanged ($1.230), Oct unchanged ($1.229)
Weekly Corn Export Sales – 377.2 K T. old crop vs. 100-400 K T. expected – 553.1 K T. new crop vs. 300 K – 1.000 M T. expected
USDA announces corn export sales – 110 K T. sold to unknown (30 K T. old crop, 80 K T. new crop)
The spec shorts are on the run!!! Follow through buying is being prompted by a number of factors. The USDA report did show a bigger than expected production number than expected but that is being offset by the unknown damage to the corn crop in the “I” states of the Midwest. The trade is still trying to assess just how much corn has been impacted by the storm that went through earlier this week. There will be great interest for Monday afternoon’s crop condition report. The “D” word has also come back to the corn market as projected demand in the USDA report was more than the trade had been thinking. The FSA report on this spring’s impacted acres, on the surface, appears greater than originally thought. Remember that the sign-up deadline to the FSA has been extend until the 15th of this month. Also, the FSA will update this report on monthly basis for the next few months. Last but least – technical buying has been noted following yesterday’s bullish performance.
Dec corn is now in line to challenge the gap at $3.44 from July 10th. I can’t help but notice Dec corn closed right on its 100-day MA. The last time this happened the rally last for about one more week. Short term intra-day and inter-day technical data have a bit of overbought to them. This can be easily alleviated with some overnight easiness. I have to think the price action will have a firm bias going into Monday afternoon’s condition report.
Daily Support & Resistance – 8/14
Sept Corn: $3.20 – $3.30
Dec Corn: $3.33 – $3.44
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