Sept Corn closed 6 ¼ cents lower ($5.34), Dec 8 ½ cents lower ($5.34 ¼) & March 8 cents lower ($5.42 ¾)
Stable crop ratings, no immediate weather threats and the month end churn opened the door to a second day of liquidation. At one point Dec corn was down 17 ½ cents. Crop progress reports suggests corn harvest will be upon us sooner vs. later. There continues to be rhetoric around the situation at the gulf due to the effects of Hurricane Ida. So far I have not seen any clear answers as to when the gulf will be back to operational. One would think this would weigh on the nearby spreads but then again we did not see any corn deliveries against the September contract. My bottom line to all of this is that the new crop supply is growing and demand is not keeping up.
After today’s price action the downside target of $5.20 to $5.10 remains in the cards but I’m thinking not until later in September; at least until we see what the USDA has to say on the 10th. The shorter term look suggests a minor oversold on inter-day charts as evidenced by the minor burst of short covering going into the close. As I mentioned earlier I think part of today’s break was due to month end considerations so it would not surprise me to see some bouncing over the next few days.
Daily Support & Resistance – 09/01
Dec Corn: $5.28 – $5.42
March Corn: $5.36 – $5.50
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