Sept Corn closed 25 cents lower ($3.85 ¼), Dec 25 cents lower ($3.92 ¾) & March 25 cents lower ($4.03 ¼)
Sept Chgo Ethanol closed $0.106 cents a gallon lower ($1.336) & Oct $0.105 cents lower ($1.340)
Weekly Corn Export Inspections – 703.1 K T. vs. 500-750 K T. expected
Weekly Corn Crop Condition & Progress – 57% GE (unch) vs. 56% expected vs. 70% year ago – Silking – 90% vs. 97% 5-year average – Dough Stage – 39% vs. 61% 5-year average – Dented – 7% vs. 16% 5-year average
USDA Corn Report – Planted acres 2 million higher than expected – Harvested acres 2 million higher than expected – Yield 4.6 bpa higher than expected – US carryout 561 million bu. higher than expected – World carryout 17.63 M T. higher than expected
Do you really want me to rehash today’s devastation? See the attached for the breakdown of Supply-Demand as well as how the USDA numbers compared to expectations. Needless to say everything was quite bearish. The 11.2 million acres that went to PP – my guess is that these acres were planted on as well as being enrolled in the program.
For what it is worth – at today’s close Dec corn options were suggesting another 5-6 cents lower. Spreads were suggesting 1 ½ to 2 cents wider vs. settlements
The only technical support remaining in Dec corn is the May 13th, 14th gap at $3.77 ½. The recent attempt to correct higher measures to $3.70; just 6 ¼ cents above contract lows.
Daily Support & Resistance for 08/13
Sept Corn: $3.77 – $3.88
Dec Corn: $3.84 – $3.97
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.