Dec Corn closed 4 ¼ cents higher ($4.19), March 3 cents higher ($4.23 ¾) & July 2 cents higher ($4.26 ¾)
Dec Chgo Ethanol closed unchanged ($1.400), Jan $0.010 cents lower ($1.340)
Weekly Ethanol Grind (11/27) – Production – 974 bpd vs. 990 week ago – Stocks – 21.2 M bbls vs. 20.9 M week ago
Weekly Corn Export Sales – old crop vs. 800 K – 1.600 M T. expected – new crop vs. none expected
Flat price corn dumps in the overnight responding to beneficial weather in Argentina and southern Brazil (Rio Grande do Sul). The day session brings us a rally out of the hole prompted by sharply higher wheat prices (inter-market spreading) and what appears to be good ongoing demand for US corn. Despite the recent gyrations with the US Dollar it stays depressed and that in turn keeps US corn origination the cheapest out there.
The interior corn basis reads to steady to higher as does the Gulf. The month of December has a history of relatively strong basis levels as the producer tends to be slow with new sales as he does not want to report the income for year end tax purposes. Spreads show a strong bias reflecting the continuing export demand for US corn.
The technical look after today’s price action suggests interim minor support is holding. What comes next is how good is the resistance that was established with this week’s break stemming form the downside reversal that was registered on Monday. I’m looking at some minor congestive type resistance from $4.26 to $4.29 followed by $4.35. Daily momentum indicators clearly read lower. These suggest we’re supposed to be selling rallies to resistance.
Daily Support & Resistance – 12/03
March Corn: $4.18 – $4.29
July Corn: $4.21 – $4.32
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