December Corn closed ¼ cent higher ($5.69 ½), March ¾ of a cent lower ($5.78) & May 1 ¼ cents lower ($5.82 ¼)
Weekly Corn Export Sales – old crop vs. 700 K – 1.400 M T. expected – new crop vs. 0-10 K T. expected
It was a bit of a roller coaster ride today in the corn market with wheat still being the primary influence. Dec corn trades nearly 10 cents higher when Dec Chgo wheat traded nearly 22 cents higher. By the noon hour Dec wheat had sold off by as much as 18 cents while Dec corn sells off by 12 cents. The break in the grain markets was prompted by a short term overbought as well as a continued strengthening US Dollar. Another big feature of the day was Dec/March corn trading a huge volume, nearly 120 K contracts. For what it is worth today was the last day of the big boy index fund roll.
Interior cash corn has the processor standing in with the best basis levels. River locations that feed down the Gulf are still looking soft. The Gulf appears to have stabilized after its recent weakness. The Dec/March corn spread improved by 1 cent while the March forward spreads also showed a bullish bias all the way to the new crop. Weekly export sales will be out in the morning after a one day delay due to today’s federal holiday. Sales are expected to be in the same range as last week when 1.223 M T. were reported.
Going forward I have to think the corn market will remain influenced by the goings in the wheat market. The technical look at the corn charts still suggest resistance just shy of the highs we saw last week. The inability to sustain this morning’ rally does suggest some lower momentum for the near term.
Daily Support & Resistance – 11/12
Dec Corn: $5.60 – $5.76
March Corn: $5.69 – $5.85
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.