March Corn closed 5 ½ cents higher ($5.91 ¼), July 5 ¼ cents higher ($5.91 ¾) & Dec 3 ½ cents higher ($5.47 ¼)
Weekly Corn Export Sales – 1.948 M T. old crop vs. 1.200-2.000 M T. expected – 754.4 K T. new crop vs. 725-900 K T. expected
Flat price corn had a number of factors working for today’s higher prices. They are in no particular order; rebounding wheat prices, best weekly export sales of the season to date, stronger crude oil prices, a noticeably weaker US dollar, developing weather fears out of SA and lastly a continued strong cash market. Despite all of these friendly forces that were at work today flat price corn remains range bound.
Most interior cash corn locations run unchanged on the day. I did see one interior river location with an easing basis. The midday posting at the Gulf reads a bit easier vs. the past number of days. Corn spreads ran steady upfront with a tightening bias as one went forward. Old crop continues to be a noticeable gainer vs. the new crop.
The technical look continues to say $6.00 is a primary resistance level. $5.82-$5.81 remains the downside swing point. South-southeastern Brazil continues to show a dry bias. Argentina talks about how its going to get quite hot for a while but then rain will follow. Going forward play the trading range until proven wrong. Fading short term inter-day extremes has proven to be a decent avenue for short term trading.
Daily Support & Resistance – 12/17
March Corn: $5.82 – $6.00
July Corn: $5.82 – $6.00
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.