Dec Corn closed 3 ¼ cents higher ($4.05 ¼), March 3 ½ cents higher ($4.10 ½) & July 3 ¼ cents higher ($4.12)
Nov Chgo Ethanol closed $0.029 cents a gallon higher ($1.430), Dec $0.029 higher ($1.444)
USDA announces Corn Export Sales – 345 K T. sold to Unknown – 123 K T. sold to Mexico
Weekly Corn Export Inspections – 911.0 K T. vs. 600-900 K T. expected
Weekly US Corn Crop Condition & Progress – 61% GE (unch) vs. 61% expected vs. 56% year ago – Mature – 97% vs. 94% 5-year average – Harvested – 60% vs. 57% expected vs. 43% 5-year average
The daily range shows a two-sided trade but the majority of the day’s trade was spent at slightly higher levels. Export demand remains consistent as evidenced by today’s slightly higher than expected export inspections as well as the recent announced daily sales (128 K T. on Friday & 468 K T. announced today). Harvest on a national level is expected to be just past the 50% level. Weather forecasts suggest the west will continue to roll while we may see some slowdowns in the east. Brazilian corn planting remains slow due to the ongoing dryness and central Argentine remains dry.
Interior Midwestern basis run mixed. Where harvesting is yet to be done basis levels run steady to easier. Where harvest has just about come and gone basis levels run steady to firmer. The Gulf basis continues to be firm/strong. Nearby spreads ran fractionally easier out to May and then bull spreads took over.
Nearby corn charts are favoring consolidation just below its recent upper end. Friday’s trade did suggest a minor reversal with its challenge of the $4.10 level followed by a weaker close. I have to think that any appreciable downside correction will be technical in nature given the continued rise in new long spec positions. It is my thought that as long as the US export market (the Gulf) stays strong corrections will be short lived.
Daily Support & Resistance – 10/20
Dec Corn: $4.00 – $4.10
March Corn: $4.05 – $4.15
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