Corn Commentary


Corn – Just My Opinion

Sept Corn closed 1 ¼ cents lower ($4.04), Dec 2 ¼ cents lower ($4.12 ½) & March 3 ½ cents lower ($4.22)

Sept Chgo Ethanol closed $0.020 cents a gallon lower ($1.428) & Oct $0.021 cents lower ($1.433)

Bloomberg Survey Results for August 12th – Planted Acres 87.7 million – Yield 164.9 – Production 13.146 billion bu. – New Crop Carryout 1.570 billion bu. – Old Crop Carryout – 2.386 billion bu.

Monday stopped the liquidation bleeding. Tuesday started the consolidation run to August 12th. Bull spreading was featured despite the lower flat price. Given recent dryness in selected parts of the Corn Belt yield concerns are beginning to increase as well as if we’ll have any early corn. The Monday progress reports continue to remind us of just how late corn is with its maturity. With that said bull spreading is on once again in the nearby spreads.

Savanna, Il continues to deal with loading problems; one day on one day off. It looks like Davenport is having the same problems. Cedar Rapids is increasing its basis due to slow movement. The eastern corn continues to be relatively strong. The Gulf continues to retreat.

My price action idea is for a consolidating type trade between now and next Monday. Monday’s low of $4.00 ¾ should be viewed as support with nothing better than the low $4.20’s for resistance.

Daily Support & Resistance for 08/07

Sept Corn: $3.99 – $4.11    

Dec Corn: $4.08 – $4.20

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.