December Corn closed 2 ½ cents lower ($5.83 ½), March ½ cent lower ($5.83 ½) & May ¼ cent lower ($5.86)
Weekly Corn Export Inspections – 758.1 K T. vs. 600 K – 1.000 M T. expected
Consolidation best describes today’s corn trade as it was an inside day of Friday’s rally. I did not see a direct corn feature other than weekly export inspections and they favored the lower end of expectations. I do think the up, down & up the wheat market lent some intra-day direction as did the firm strong looking energy prices.
The interior corn basis has taken on a mixed look. River locations run steady to easier while processors ran mixed (some higher, some lower). The Gulf basis continues to be strong. Corn spreads ran fractionally easier on the day.
As we move forward into the month of December I’m not looking for a big day-to-day trade. I do think prices will have a firm bias as new cash corn sales should remain slight for end of the year reasons while demand for corn from the export sector should remain pretty good. As much as I think the demand from the ethanol sector may slip a bit it will be no slouch. $6.00 March corn appears to be a reasonable target/resistance.
Daily Support & Resistance – 12/07
March Corn: $5.79 – $5.90
July Corn: $5.81 – $5.92
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