March Corn closed 9 ½ cents lower ($5.96), July 10 ¾ cents lower ($5.94 ½) & Dec 7 ¼ cents lower ($5.45 ¾)
Weekly Corn Export Sales – 1.246 M T. old crop vs. 500 K – 1.100 M T. expected – 60.0 K T. new crop vs. none expected
Despite better than expected weekly export sales the corn market succumbed to liquidation prompted by some overnight rains in the Brazilian state of Parana and southern Argentina as well as forecasts for more in the next week or so. Coming into today my thought was a flat to easier market just because of the year-end time frame but weather considerations for SA held sway.
Interior cash corn (basis) levels show the processors are fully steady while river locations involved with export run steady to better. The midday post at the Gulf is fully steady holding onto its recent firmness. Corn spreads within the current crop year showed a tightening bias while old crop loses to the new crop reflecting the upfront liquidation.
Tomorrow is the last day of the year and the corn market has corrected 25 cents this week (high to low). With that said I would be surprised to see much of a trade one way or the other; no more than 5 cents either way. I think we traded the short term weather considerations for SA the past two days.
Daily Support & Resistance – 12/31
March Corn: $5.90 – $6.00
July Corn: $5.88 – $5.98
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.