Corn Commentary


Corn – Just My Opinion

Sept Corn closed 5 ¼ cents lower ($3.44 ½), Dec 5 cents lower ($3.53 ¾) & March 4 ½ cents lower ($3.64 ¾)

Sept Chgo Ethanol expired unchanged ($1.365), Oct closed unchanged ($1.306)

Weekly Corn Export Sales – 95.8 K T. old crop vs. -50+100 K T. expected – 2.389 M T. new crop vs. 1.500-2.500 M T. expected

Solid export sales but they were expected. For the first in many many weeks China did not sell the entire 4.0 M T. offered out of their reserve, only 1.4 M T. The trade still wants to talk about a noticeable decline in production/carryout on next Friday’s USDA production/supply-demand update. Unfortunately how does one trade that every day with the report still one week away. Some but all weather forecasters still talk about a frost threat for the north/northwestern reaches of the Corn Belt for mid-late next week.

Interior Midwestern cash corn markets (basis) run steady to easier especially at locations where harvest will happen sooner vs. later. The Gulf basis eases ever so slightly. Corn spreads showed a widening bias.

For the time being I’ll continue to call Dec corn in a minor consolidation phase. $3.50 is still the initial support followed by the gap at $3.45.

Daily Support & Resistance – 9/04

Dec Corn: $3.50 – $3.58 

March Corn: $3.61 – $3.69

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.