December Corn closed 14 cents lower ($5.67), March 14 ¾ cents lower ($5.67 ½) & May 15 ¾ cents lower ($5.70)
It was another “risk-off” day not only for corn but for commodities in general. Fears of the new Covid virus variant is behind the majority of the sell-off as many in the know are suggesting this could be just as serious as the original outbreak. A major pharmaceutical firm alludes to the idea a vaccine for the variant may not be found as quickly as originally thought. Additionally it is reported that the US Fed is talking about ending their bond buying sooner vs. original planned suggesting the current rate of inflation may be more than just transitory.
The interior corn basis is running mixed today. River locations are showing steady to higher basis levels while the gulf maintains its recent firm tone. Corn processors are steady while a couple of the ethanol locations are reaching a bit with their basis levels. Bull spreads were working within the current crop year (only 2 deliveries against the December contract) while old crop is a noticeable loser vs. the new crop. Tomorrow is ethanol grind day. I’m thinking steady to easier with the grind with stocks building.
Since last Wednesday March corn has now broken 34 cents from its high to today’s low. Short term inter-day technical indicators read oversold while daily technical data is nowhere near being oversold as the market has only been breaking for only two days. I would like to think we are in line for some bouncing but then again we’ll continue to take our cue from outside markets (just like we did today).
Daily Support & Resistance – 12/01
March Corn: $5.57 – $5.77
July Corn: $5.60 – $5.80
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