Corn Commentary


Corn – Just My Opinion

December Corn closed 14 ½ cents higher ($5.69 ¼), March 14 ½ cents higher ($5.78 ¾) & May 14 ¼ cents higher ($5.83 ½)

Weekly Ethanol Grind as of 11/05 – 1.039 M bpd vs. 1.107 M week ago – Stocks – 20.3 M bbls vs. 20.1 M week ago

Flat price corn zooms higher highly influenced by soaring wheat prices. I did see S. Korea buy two loads of corn overnight but it did not look like US origin. The sharp strength in the US dollar did little to curb today’s enthusiasm for ownership. The weekly ethanol grind slips a bit from recent advances and stocks nudge higher.

The corn processor basis continues to stand tall. Locations on the interior riverways that lead to the Gulf continue to be slack looking. This holds true for Gulf basis values as well. Corn spreads ran steady to better in the wake of the flat price buying.

Are we looking at “as goes the wheat market, so goes the corn market”?. As I mentioned yesterday I did not think the USDA corn data was any big deal for one direction or another. I did mention the corn market will take its cue from outside influences and that’s just what it did today. It will be interesting to see if the break in energy prices today has follow through tomorrow and will it influence the corn market. The US export market has been no great shakes; all of the recent bullishness has come from the ethanol sector. Continued strength in the US dollar should act as a deterrent to higher corn prices.

Weekly export sales are delayed to Friday as tomorrow is Veteran’s Day, a federal holiday.

Daily Support & Resistance – 11/11

Dec Corn: $5.58 – $5.74

March Corn: $5.68 – $5.84

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.