Dec Corn closed 5 cents lower ($4.14 ¾), March 5 ¼ cents lower ($4.20 ¾) & July 5 cents lower ($4.24 ¾)
Dec Chgo Ethanol closed unchanged ($1.400), Jan unchanged ($1.350)
It appears yesterday’s suggested downside reversal is taking hold as flat price corn registers two week lows. After an early attempt at stabilization of yesterday’s break liquidation continued as it became apparent the “new” month buying just wasn’t there. Weather in SA is just enough to keep new buying at bay. Southern Brazil and a good portion of Argentina continue to see decent rains in their respective forecasts. The drier areas of Brazil may see some beneficial rains in the early portions of their 6-10 forecast. Yesterday’s COT report acted as a reminder of just how long the spec sector is despite yesterday’s sell off.
Interior cash corn markets are stable if not a bit better. The Gulf market appears to be a bit easier at its midday posting. The March to July corn spreads ran steady to fractionally easier. The old crop/new crop spreads continue to retreat which is consistent with the overall liquidation phase.
Flat price corn close at two week lows. It only took two days to achieve this. As of this writing March corn is hugging an uptrend line that has been in place since the rally started back in early August. Going forward weather considerations for SA will continue to dominate the daily discussion. From a technical perspective flat price corn appears to be on the ropes. The best looking support for the near term comes into focus at $4.15 followed by $4.10.
Daily Support & Resistance – 12/02
March Corn: $4.15 – $4.26
July Corn: $4.19 – $4.30
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.