December Corn closed 5 cents higher ($5.72), March 4 cents higher ($5.71 ½) & May 3 cents higher ($5.73)
USDA announces Corn Export Sales – 150 K T. to Colombia
Weekly Ethanol Grind (11/26) – 1.035 M bpd vs. 1.070 M week ago – Stocks – 20.3 M bbls vs. 20.2 M week ago
Weekly Corn Export Sales – old crop vs. 600 K – 1.250 M T. expected – new crop vs. 0-75 K T. expected
As far as I’m concerned today’s trade in corn was all about a minor technical rebound from the recent sharp sell-off. The ethanol grind eases and stocks build ever so slightly. The ethanol margins are definitely edging lower and that will work to slow down the grind. Ethanol prices are finally starting to come down to earth especially when compared to RBOB prices.
Interior cash corn prices (basis) continue to show a firm tone. The gulf hangs tough as well. Going forward it is my thought the ethanol program may see some easing while the US corn export program should stay pretty good. It’s the export program that will keep the corn market alive enough to keep it form collapsing. Corn spreads showed a bullish bias all the way out the new crop.
Today’s price performance was mostly technical in nature. I do think the flat price has some additional downside to it but on an inter-day basis corn had gotten very oversold. Today’s bump up in prices alleviated that short term technical consideration. Longer term I think March corn has the capability to trade down to the $5.50 level while the upside should be limited to the mid-low $5.80’s.
Daily Support & Resistance – 12/02
March Corn: $5.64 – $5.79
July Corn: $5.66 – $5.81
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