Dec Corn closed 5 ¼ cents higher ($3.96 ½), March 3 ¼ cents higher ($4.02 ½) & July ¾ cent higher ($4.06 ¼)
Nov Chgo Ethanol closed $0.015 cents a gallon higher ($1.430), Dec $0.015 higher ($1.409)
USDA announces Corn Export Sales – 420.0 K T. sold to China
Besides the corn sale to China nearby bull spreads were the primary features of the day. Ongoing dryness in Brazil and Argentine lend additional support. The nearby slots at the Gulf continue to surge higher reflecting demand and the lack of cash corn sales. Most interior Midwestern cash corn locations show steady to easier basis levels with one exception – Savanna, IL jumps 20 cents. I have to think this is in response to the higher gulf values. The steady to easier basis levels elsewhere are reflective of the ongoing harvest.
It’s not saying a lot but I have think Dec corn is ready to see what’s above the $4.00 mark. Yes, $4.00 is sort of a magical mystery mark but something closer to $4.05 is a better looking near term resistance point based on daily charts. Weekly charts suggest something closer to $4.10. The “W” looking bottom on the weekly corn charts measures to $4.05. My bottomline to all of this is that corn prices still have room to move higher.
Daily Support & Resistance – 10/15
Dec Corn – $3.93 – $4.02
March Corn – $3.99 – $4.08
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