December Corn closed 3 ¾ cents higher ($5.888 ½), March 4 ½ cents higher ($5.91 ¾) & May 4 ¼ cents higher ($5.93 ¼)
Weekly Corn Export Sales – 1.132 M T. old crop vs. 600 K – 1.400 M T. expected – no new crop vs. 0-50 K T. expected
Highlights USDA Corn S&D Report – US – left all domestic data unchanged – World – increased total supply by 4.93 M T., increased usage by 3.81 M T., increased carryout 1.12 M T.
The US corn carryout comes in unchanged vs. ideas of a 12 M bu. reduction. The world carryout comes in 1.12 M T. higher vs. ideas of a 60 K T. increase. The initial reaction was lower but it did not last long, maybe 7-8 minutes. Prices then moved about 11 cents off of those interim lows. The balance of the session was spent trading 1-2 cents higher prior to a late push to the 5 cent higher level.
So; based on expectations I would call the corn report neutral to slightly bearish. The ability to overcome that, I believe, is all about the current strength in the cash market whether it be for domestic usage or for export. Bull spreads continue to work within the old crop and old crop is a noticeable gainer vs. the new crop.
Going forward I’m still with the frame of mind that $5.90 to $6.00 represents technical resistance for March corn. My thought is that $6.00 becomes a bit price prohibitive as it opens the door for other export origins such as Ukraine and Argentina.
Daily Support & Resistance – 12/10
March Corn: $5.84 – $5.97
July Corn: $5.84 – $5.97
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