Sept Corn closed 11 ¾ cents lower ($5.50), Dec 14 ¼ cents lower ($5.50 ¾) & March 14 cents lower ($5.58 ¼)
Weekly Corn Export Sales – 216.5 K T. old crop vs. -100 +200 K T. expected – 510.0 K T. new crop vs. 300-930 K T. expected
New crop corn weekly export sales were nothing to write home about. It seems the ProFarmer crop tour is finding pleasant surprises out there; not in line with the dramatic drop in yields the USDA is suggesting. Couple all of this with the dramatic drop in energy prices, the strength of the US Dollar and whatever bullishness that came out of last week’s USDA crop report has now been mostly negated. Since Last Thursday’s USDA report the flat price of corn has been on the defensive. I have to think no one believes the yield the USDA put out; that it has been understated.
The technical look is not a good one with Dec corn closing below $5.51 ½. The price action is now below the level we were at last Thursday just before the USDA’s supposedly bullish report. I can’t imagine anyone trying to be friendly will sit still for a close below $5.43. Think of it this way – the USDA is giving us the second biggest crop size and they are cutting demand by 360 M bu. vs. one year ago.
Daily Support & Resistance – 08/20
Dec Corn: $5.41 – $5.60
March Corn: $5.49 – $5.68
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