March Corn closed 4 ½ cents lower ($5.85 ¾), July 5 ¼ cents lower ($5.86 ½) & Dec 2 cents lower ($5.43 ¾)
Weekly Ethanol Grind (12/10) – 1.087 M bpd vs. 1.090 M week ago – Stocks – 20.9 M bbls vs. 20.5 M week ago
Weekly Corn Export Sales – old crop vs. 1.200-2.000 M T. expected – new crop vs. 725-900 K T. expected
March corn comes within a ¼ cent of the Nov 25th interim high (5.96 ¾) and then turns tail. Dramatic weakness in the wheat market was the primary bearish influence. The weekly ethanol grind slipped ever so slightly from one week ago while stocks continue to build. If the building of stocks continues I have to think the weekly grind should ease off. The bottom line is that the corn market continues to be a range bound trading affair. For the near term I’ll call it $5.75 to $5.95. On a broader scale I’ll call it $5.50 to $6.00.
Cash markets continue to be strong for both domestic and for export. Despite the selling bull spreads within the current crop year continue to show a tightening bias. Old crop, however, does lose to the new crop.
I’m still looking at The $5.82 level (closes below) as a short term jumping off point. I think if we close below that level we should be able to trade down to $5.75 in relatively short order.
Daily Support & Resistance – 12/16
March Corn: $5.79 ($5.75) – $5.94
July Corn: $5.80 ($5.76) – $5.95
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.