December Corn closed 5 cents higher ($5.77), March 5 ¼ cents higher ($5.76 ¾) & May 6 ¼ cents higher ($5.79 ¼)
Weekly Corn Export Sales – 1.020 M T. old crop vs. 600 K – 1.250 M T. expected – 0.3 K T. new crop vs. 0-75 K T. expected
Flat price corn stays firm in response to higher wheat prices, a dramatic looking turn around in crude oil prices, stronger equities and decent looking weekly export sales. The “risk-off” attitude we saw earlier in the week has now changed back to “risk-on”. The omicron virus related fears of earlier in the week appear to have eased for the time being.
Cash corn markets (basis) continue to show a firm bias as there is not much happening in the terms of new farmer sales. The export market is firm as well. Interesting to note May corn was the strongest of the old crop contracts today. That suggests to me we can look for to continued good demand going forward. As much as I think ethanol demand may slip some export demand should stay quite good.
Technically the corn market’s price action is showing some resiliency to breaking down. I’m not sure March corn is much better than $5.90 to $6.00. With that I’ll treat he market as a trading affair between $5.60 and the $5.90 to $6.00 level. The day-to-day trading will probably be relatively choppy so chasing short term extremes could prove to be a lesson in frustration.
Daily Support & Resistance – 12/03
March Corn: $5.69 – $5.89
July Corn: $5.71 – $5.91
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.