December Corn closed 2 ¾ cents higher ($5.86 ¼), March 2 ½ cents higher ($5.86) & May 2 ½ cents higher ($5.88 ½)
Flat price corn manages to eke out new highs and new high closes for the recent 5 day move higher. During the session corn prices remain influenced by the goings on the in the wheat market as well as the firmer crude oil prices. Trade chatter has the EPA coming out today with its updated blending mandates. Speculation has them setting the ethanol blending mandate for 2022 at 15 B gallons which is unchanged from 2019. The 2020 and 2021 mandates do show lower numbers citing the pandemic as responsible. It is also thought the EPA will deny as many as 65 small refiners requesting waivers from the mandate. In the end I’m attributing today’s small gains to the ongoing strength in the crude oil market as well as firming wheat prices.
In the for what it’s worth dept; Thursday’s USDA US carryout is expected to show a decline of 12 M bu. to 1.481 B. The World carryout is expected to increase by 60 K T.
Interior corn basis levels ran mixed on Tuesday. River locations involved with export ran steady to easier while processors continue to stand in. the midday posting has the Gulf basis easing ever so slightly form last night. Corn spreads ran mostly steady across the Board with only a few fractional changes being seen.
$5.90 to $6.00 is still the resistance/target level for the current rally (March Corn).
Daily Support & Resistance – 12/08
March Corn: $5.80 – $5.94
July Corn: $5.83 – $5.96
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