Dec Corn closed 5 ½ cents higher ($4.25 ¾), March 3 ¾ cents higher ($4.30 ½) & July 3 cent higher ($4.33 ¾)
Dec Chgo Ethanol closed unchanged ($1.420), Jan unchanged ($1.380)
USDA announces Corn Export Sales – 140 K T. sold to Unknown
Weekly Ethanol Grind – Production – 962 bpd vs. 977 bpd previous week – Stocks – 20.2 million bbls vs. 20.2 million previous week
Weekly Corn Export Sales – old crop vs. 600 K – 1.000 M T. expected – new crop vs. none expected
Bull spreading continues to lead flat price corn higher. Interior cash corn prices have stabilized/rebounded from last week’s sell off. The Gulf basis is also coming back. We continue to see modest corn export sales’ announcements; 195 K T. to Mexico yesterday and 140 K T. to unknown today. The trade continues to think Chinese interest is out there but so far we’re not getting any confirmation other than late winter, early spring Gulf basis improvement. Weekly export sales are out tomorrow and unless it’s my imagination expectations seem to be coming down bit. I’m also wondering if Friday’s December option expiration is behind some of the Dec contract’s improvement on the spread. Weather in southern Brazil and Argentina (continuing with a dry bias) remains supportive.
Old crop corn charts continue to retrace last week’s sell off following the November 10th sharp rally. We’ve yet to match those highs while new crop prices are making new highs for the current rally. Last Tuesday’s highs may provide some resistance for the old crop contracts but overall I see nothing bearish in the current price action. Weather updates for SA and the weekly export sales report should dictate direction for the balance of the week.
Daily Support & Resistance – 11/19
March Corn: $4.22 – $4.36
July Corn: $4.25 – $4.39
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 future results.