Dec Corn closed 5 ¾ cents lower ($4.19 ¾), March 7 ¾ cents lower ($4.26) & July 7 ½ cents lower ($4.29 ¾)
Dec Chgo Ethanol closed $0.020 cents a gallon lower ($1.410), Jan $0.010 lower ($1.360)
USDA announces Corn Export Sales – 344 K T. sold to Unknown
Weekly Corn Export Inspections – 890.0 K T. vs. 700 K – 1.000 M T. expected
Call it month end position squaring and/or profit taking. Call it good rains in Argentina and southern Brazil. Call it what you want as to today’s trade but the bottom line is that the night session pumped out new highs in the early going Sunday night only to fail miserably during the day session. The USDA announcement of another round of daily export sales seemed to fall on deaf ears. Weekly export inspections were deemed as “okay” but unfortunately :okay” doesn’t cut it when trying to sustain a bull market. The lack of deliveries against the Dec contract supported the nearby spread but that was about it.
Both interior and export cash markets are quiet with no substantial changes being noted. Old crop spreads, March to July ran steady to fractionally weaker while old crop loses to the new crop.
Today’s price action suggests we do not have enough fundamental justification to sustain higher prices at this time. The technical ramifications of today’s price action suggests we may have a top in the making with the downside reversal (new highs for the current rally, outside day, lower close). Closes below $4.25 (March) will suggest at least another 10 cents lower to the $4.15 level. $4.35-$4.36 continues to be resistance. SA weather will continue to be the daily driving force.
Daily Support & Resistance – 12/01
March Corn: $4.20 – $4.34
July Corn: $4.24 – $4.38
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.