Sept Corn closed 2 ½ cents higher ($4.98 ¼), Dec ½ cent lower ($5.10 ¼) & March ¾ cent lower ($5.19 ¾)
Despite seeing new lows for the current down move the majority of today’s corn trade was mostly consolidation ahead of Friday USDA report. At one point Dec corn was able to bounce 9 cents from its early morning lows. Unfortunately the bounce failed to hold as the spec trade still appears to be in a liquidation mode. New news remains slight. Most in the trade believe we will see higher production numbers on Friday due to yield improvement and higher harvested acres. The higher harvested acreage ideas are getting some discussion due to the poor corn crop in the Dakotas and parts of Minnesota. As of this writing I’m not expecting any improvements in demand. Export for new crop has been slow in recent months. Ethanol demand has been declining for the past 8 weeks which could lead to a higher old crop carryout.
My bias is to see consolidation maybe some modest short covering ahead of Friday’s USDA report. It gets a bit disconcerting when markets appear so biased in one direction going into these reports as it opens the door for some potential volatile knee-jerk reactions.
Daily Support & Resistance – 09/09
Dec Corn: $5.07 (?) – $5.18
March Corn: $5.17 (?) – $5.28
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.