Dec Corn closed ¼ cent lower ($3.79 ½), March unchanged ($3.89 ¼) & July ¼ cent lower ($3.98 ¼)
October Chgo Ethanol closed $0.023 cents a gallon higher ($1.390), Nov $0.023 cents higher ($1.313)
USDA announces Corn Export Sales – 160 K T. sold to Mexico
Weekly Corn Export Inspections – 863.9 K T. vs. 650 K – 1.100 M T. expected
Weekly US Corn Crop Condition & Progress – 62% GE (+1%) vs. 61% expected vs. 56% year ago – Mature – 87% vs. 78% 5-year average – Harvested – 25% vs. 26% expected vs. 24% 5-year average
Monday brought us a consolidating corn trade just below last week’s interim highs. Traders seem to be weighing harvest progress / potential pressure vs. the idea of lower production, higher demand, and noticeably lower carryout on Friday’s USDA report. It was interesting to note that the latest COT report suggested the spec sector added to their net long positions during a period of downside correction.
The interior Midwestern corn basis has a mixed look to it. The Ohio River looks about 2 cents better, Toledo is 3 cents better while Council Bluffs reads 11 cents lower. The midday Gulf posting is easier from the highs we saw last Tuesday. Corn spreads within the current crop year ran fractionally mixed while old crop sees fractional losses vs. the new crop.
Corn charts continue to read higher despite the minor two-day period of consolidation. I’m still looking at the mid-low $3.90’s as the next level of resistance with a count closer to $4.00. The mid to low $3.70’s are viewed as support between now and Friday’s USDA report.
Daily Support & Resistance – 10/06
Dec Corn: $3.75 – $3.85
March Corn: $3.85 – $3.95
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 eclipse the high side of expectations. results.