March Corn closed 5 ¼ cents higher ($4.32 ½), May 5 cents higher ($4.34 ¾) & July 4 ¾ cents higher ($4.35 ¼)
Jan Chgo Ethanol closed $0.0200 cents a gallon higher ($1.3500), Feb $0.0175 cents higher ($1.3725)
Weekly Corn Export Sales – 1.924 M T. old crop vs. 800 K – 1.600 M T. expected – 10.0 K T. new crop vs. none expected
Flat price corn rallies out of its recent 10 day old trading range. Strong weekly export sales, the continued decline in the US Dollar, iffy weather for SA, the continuing labor strike in Argentina and overall strength of the US Ag complex all worked together to give us the day’s rally.
Interior cash corn markets read steady to better as new cash sales remain slow. The Gulf basis continues its 3-day rebound. Corn spreads continue to firm within the old crop and old crop advances vs. the new crop. The July/Dec corn spread is mirroring the old crop flat price action. In other words an interim buy signal is being registered.
March corn is now in line to test the November 30th contract high, $4.39 ½. The other day I suggested that daily momentum indicators were trying to shift higher. After today’s activity that shift to higher is becoming much clearer. The high close has been $4.33 ¾. A close above that level will not only suggest a challenge of the contract highs but also the possibility of running to new highs.
Daily Support & Resistance – 12/18
March Corn : $4.28 – $4.38
July Corn: $4.30 – $4.40
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.