December Corn closed 7 cents higher ($5.32 ¾), March 6 ¼ cents higher ($5.40 ½) & May 5 ½ cents higher ($5.44 ¼)
Weekly Corn Export Inspections – 976.2 K T. vs. 650-850 K T. expected
Weekly Corn Crop Condition & Progress – 60% GE (unch) vs. 60% expected vs. 61% year ago – Mature – 97% vs. 93% ave – Harvested – 52% vs. 54% expected vs. 41% ave
Dec corn has now fully retraced last week’s Tuesday/Wednesday break down to the $5.07 level. Strong looking exports (both sales and shipments) coupled with a continued strong energy market is the rationale for the near 30 cent retracement.
Interior cash markets have taken on a mixed look following this past weekend. Where harvesting is active and corn being sold off the combine basis levels are a bit weaker. Elsewhere basis levels are steady to better. The gulf market has a steady yet firm tone. Corn spreads continue to show a tightening bias.
Flat price corn is now back to levels it broke down from following last Tuesday’s USDA production/supply-demand update. Does this price action suggest the USDA was wrong with their latest assessments; that we don’t have the supply or demand is greater vs. what was laid out? The technical look at the price action suggests we have entered into an interim resistance level here at the mid-$5.30’s. I would be surprised to see closes above the $5.40 level.
Daily Support & Resistance – 10/19
Dec Corn: $5.25 – $5.38
March Corn: $5.33 – $5.46
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