Sept Corn closed ½ cent lower ($3.24 ½), Dec ½ cent lower ($3.39 ¼) & March ½ cent lower ($3.52 ¼)
Sept Chgo Ethanol closed $0.020 cents a gallon lower ($1.290), Oct $0.020 higher ($1.280)
Weekly Corn Export Sales – 61.6 K T. old crop vs 100-550 K T. expected – 723.3 K T. new crop vs. 400-800 K T. expected
Flat price corn continues to ease from the highs we saw earlier this week. Weekly export sales did not offer anything in the way of market making demand. So far the ongoing crop tour has not found anything significant in regard to a radical downwards adjustment to yield. Today they are supposedly in the area of Iowa that got hit the hardest with the week ago Monday windstorm. I think that’s what got the corn market off of its overnight lows.
Interior Midwestern cash corn basis is mixed. The Ohio River is reaching for corn as is Decatur, IL. Earlier this week Cedar Rapids jumped their basis 10 cents and now its off 11 cents. Elsewhere not much is happening. The Gulf basis for nearby corn is mixed and it has been that way all week. Any day-to-day changes are just pennies back and forth. Spreads stay wide suggesting more than ample amounts of old crop corn getting into the pipeline.
Corn charts are trying to suggest consolidation for the near term. $3.35 (close below) is setting itself up as a short term “jump off” spot for recent buyers. Closes below that level should attract additional selling. Wouldn’t be surprised if prices hang tough through the weekend in anticipation of another downturn in conditions Monday afternoon.
Daily Support & Resistance – 8/21
Sept Corn: $3.21 – $3.29
Dec Corn: $3.36 – $3.44
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