Dec Corn closed 3 ½ cents higher ($4.08 ¾), March 2 ¾ cents higher ($4.13 ¼) & July 3 ½ cents higher ($4.15 ½)
Nov Chgo Ethanol closed unchanged ($1.469), Dec unchanged ($1.444)
Despite 40% of the US corn harvest yet to go corn futures stay firm with the Dec contract once again challenging the $4.10 level. I’m told corn offers from SA and Ukraine in the global export market are hard to come by. With that said the US export market stays firm. The interior Midwestern corn basis continues to show a steady to firm bias. Dec corn was working noticeably on the bull spread. The lack of corn offers from SA is all about the ongoing dry weather. Supposedly there is rain in the forecasts but the SA producer will not sell until he see’s it and how much sees. As Ukraine moves through its harvest it is seeing declining yields; declining to the point we should see a noticeable reduction on the next month’s update. The bottomline to all of this is that the US is the market to the world for the time being.
Overall I’m not seeing anything bearish looking in the price action whether it be in the futures’ flat price, futures’ spreads or in the cash markets. Granted the futures market is moving higher in a grinding type motion new highs and new high closes were seen today. So much for the idea of harvest pressure.
Daily Support & Resistance – 10/21
Dec Corn: $4.03 – $4.14
March Corn: $4.08 – $4.19
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