Sept Corn expired 6 ¼ cents higher ($5.03), Dec closed 7 cents higher ($5.20 ¼) & March 6 ¼ cents higher ($5.28 ¼)
Flat price corn firms from a lower than expected crop rating and word that the Louisiana Gulf is slowly coming back to operational. A slightly weaker US Dollar, strong wheat and strong alternative feed grains all worked together to support the corn market. I have to think we also saw some short term technical considerations at work given the market’s ability to sustain Friday’s short covering cue.
As we move forward into the impending harvest I think Dec corn will begin to struggle a bit as we approach the $5.30 to $5.40 level. To attain the high side of this suggested range we will need to see a pickup in export sales. I’m not sure shipments will be enough to spark a rally beyond these levels. Forecasts remain relatively clear for the near term. Cash premiums are eroding quickly. As I have mentioned in the past few days Dec corn will do well for itself to hold last Friday’s low while spinning its wheels over the near term.
Daily Support & Resistance – 09/15
Dec Corn: $5.14 – $5.26
March Corn: $5.22 – $5.34
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