December Corn expired 4 ½ cents higher ($5.88 ¾), March closed 5 ¼ cents lower ($5.90 ¼) & May 5 cents lower ($5.92 ¼)
Flat price corn remains in a recent range bound trade. Strength today came from higher soybean prices which in part stemmed from fears over a developing “La Nina” in south-southeastern Brazil and parts of Argentina. This weather scenario will eventually cut into their corn yields if it follows through. Gains were capped by sluggish wheat prices, a stronger US Dollar and lower crude oil prices.
Interior corn basis levels give me a mixed reading today. Processors continue to show the best basis structure. The gulf basis continues to stand in although it is a bit easier vs. one week ago. Corn spreads showed fractional tightening within the old crop while old crop was a noticeable gainer vs. the new crop.
Flat price corn flirts with rolling over Monday, Monday night but manages to right itself during Tuesday’s trade. SA weather fears and a resilient cash market (domestic and export) remain the bullish factors here. I’m still thinking $6.00 is high enough for now but I cannot ignore the way prices keep coming back after being on the edge.
Daily Support & Resistance – 12/15
March Corn: $5.83 – $5.97 ($6.00)
July Corn: $5.85 – $5.99 ($6.02)
The risk of trading and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.