December Corn closed 3 ¼ cents lower ($5.37 ½), March 3 ¾ cents lower ($5.46) & May 4 cents lower ($5.50 ¾)
Flat price corn moves into a minor consolidation phase as it is caught between improving soybean prices and sagging wheat prices. Harvest continues to move along in a relatively timely manner. It is my thought that as we move through harvest yields will not be as strong as thought just 2-3 weeks ago. With that my bias for corn prices is more of a trading affair vs. an outright trending market. The crop may be smaller than originally thought but as far as I’m concerned demand is no big deal meaning not of the market making demand.
Many interior cash markets continue to show seasonal “harvest” pressure. There are some areas where basis has leveled off and is actually improving. It is my belief is that these areas are showing lower than expected yields. The Gulf export basis appears to have topped out for now.
My technical perspective suggests $5.50 (Dec corn) is high enough for now. Near term support is the $5.25 level followed by something closer to $5.10. Until we get a better handle on yield and how it impacts demand prices could easily vacillate between the 30th’s daily price range; roughly $5.25 to $5.50.
Daily Support & Resistance – 10/06
Dec Corn: $5.30 – $5.45
March Corn: $5.39 – $5.53
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.