Dec Corn closed 1 ¾ cents lower ($4.20 ¼), March 2 ½ cents lower ($4.21 ¼) & July 1 ¾ cents lower ($4.25 ¾)
Jan Chgo Ethanol closed unchanged ($1.320), Feb unchanged ($1.320)
USDA announces Corn Export Sales – 344.4 K T. sold to Mexico
Weekly Corn Export Sales – 1.362 M T. old crop vs. 700 K – 1.500 M T. expected – no new crop vs. none expected
CONAB – Brazilian Corn Production – 102.589 M T. vs. 104.9 M T. (Nov) vs. 110.00 M T. (USDA)
USDA Supply-Demand – All US corn data left unchanged – World projected corn carryout comes down 2.47 M T. mostly due to China imports being increased 3.5 M T.
US Corn Stocks-to-Usage – 11.48% (unch)
The USDA S&D report can be termed as anticlimactic. With that said prices eased from their pre-report highs. Going forward I don’t think the market will fall apart but it will be susceptible to some additional spec liquidation (call it year end it you will). SA weather will continue to be a contributing day to day factor. There is periodic rain around for both Brazil and Argentina. I think once we get past year end focus will turn to the January annual production update. As of this writing I think that once again the trade will be expecting a bullish report. There is one item that is sticking in my craw – Brazilian corn production from CONAB is suggested at 102.6 M T. yet the USDA is still at 110.0 M T.
Interior cash corn markets continue to be quiet. The same holds true for the export market not only for the current time frame but also for the remaining winter and early springtime slots. Spreads eased a bit with the flat price selling.
Looks like we have a consolidating market on our hands for the near term. The lack of sustaining upside momentum may bring us some liquidation. Watch the $4.14-$4.15 level for support. Failure there may prompt some accelerated liquidation.
Daily Support & Resistance – 12/11
March Corn: $4.16 – $4.28
July Corn: $4.20 – $4.32
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