Sept Corn closed 3 ¾ cents higher ($3.51), Dec 3 ¾ cents higher ($3.61 ¾) & March 3 ½ cents higher ($3.72)
October Chgo Ethanol closed unchanged ($1.306), Nov unchanged ($1.307)
USDA announces Corn Export Sales – 101.6 K T. to Unknown
Weekly Corn Export Inspections – 781.8 K T. vs. 500-800 K T. expected
Weekly US Corn Crop Rating & Progress – 61% GE (-1%) vs. 61% expected vs. 55% year ago – Dough Stage – 97% vs. 94% 5-year average – Dented – 79% vs. 71% 5-year average – Mature – 25% vs. 19% 5-year average
What’s bullish – Anticipation of lower production/carryout from the USDA on Friday. Chatter that China may have lost up to 10 M T. of corn in its top producing area in its northeast due to a recent typhoon. It is also being suggested that China may be looking at importing US DDG’s despite import tariffs remaining in place. Last but not least the US is looking at an excellent start to its new crop export season.
What’s bearish – It has taken a 40 cent rally for the managed money sector to get net long corn for the first time dating back to August of last year. US harvest will be starting in earnest 2-3 weeks from now.
Corn charts remain strong looking as Dec corn registers its highest close dating back to last April. $3.67-$3.68 looks like the next up upside target for Dec corn followed by something closer to $3.75. Closes below $3.53 looks like the jumping off level for recent purchases.
Daily Support & Resistance – 9/09
Dec Corn: $3.55 – $3.66
March Corn: $3.65 – $3.76
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