Dec Corn closed 2 ½ cents higher ($4.16 ¼), March 1 ½ cents higher ($4.18 ¼) & July 1 ¼ cents higher ($4.19 ¼)
Nov Chgo Ethanol closed unchanged ($1.520), Dec unchanged ($1.495)
Weekly Corn Export Sales – 1.831 M T. old crop vs. 800 K – 1.400 M T. expected – no new crop vs. none expected
Strong export sales, continued strong cash markets (both interior and export) had nearby corn prices surging to new highs for the current rally. Highs of the day were made relatively early in the day session. The balance of the session was spent backing and filling that early rally. Call it a bit of profit taking. I’m hesitant to call it cash movement as I mentioned interior basis levels stay firm as do the nearby spreads. Recent weather concerns about conditions in SA still there but not as great as just a few days ago as beneficial moisture remains in their near term forecasts. One can’t help but notice the make-up of the price structure going forward – its all about how the demand is front end loaded. Going forward it will be all about the success or failure of the SA growing season.
Its hard to ignore new highs with new high closes in the front end. I will admit the flat price is starting to develop an appearance of getting stretched out. The first leg of the rally that started in August was 59 cents before a noticeable correction ensued. The second leg of the rally started in late September is 58-59 cents. This alone suggests we could be setting up another correction. The correction we saw in mid-late September was 19 cents. So am I wrong in thinking we could see another correction of that magnitude? If true $4.00 or so would be support. This is all basis the December contract.
Daily Support & Resistance – 10/23
Dec Corn: $4.10 – $4.20
March Corn: $4.12 – $4.22
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