Sept Corn closed ¼ cent higher ($3.41 ¼), Dec ¼ cent higher ($3.56 ½) & March ½ cent higher ($3.69 ½)
Sept Chgo Ethanol closed 0.042 cents a gallon lower ($1.258), Oct 0.028 cents lower ($1.269)
Weekly Ethanol Grind – 1.070 million bpd vs. 1.073 million bpd last week – Stocks – 23.1 million bbls vs. 23.3 million bbls last week
Weekly Corn Export Sales – Old crop vs. 100-300 K T. expected – New crop vs. 600 K – 1.000 M T. expected
Flat price corn gets some left-handed support from surging wheat prices. Excessively wet forecasts for the west central Corn Belt was also being talked about as to its effects on an early harvest. Other than that it seemed like a slow news day where the market just ran out of sellers.
For the most part interior cash corn basis levels continue to be on the defense. Harvest is expected to be early this year. It appears there is still a fair amount of old crop left to move to make way for the new crop. I’m already starting to hear that storage will become an issue later on in the harvest season. Corn spreads continue to show a weak bias all the way out to Dec 2019. Friday is 1st notice day. As of this writing there are 1151 tickets registered for delivery.
Wednesday brings us a pause in the spiral lower. Coming into today the flat price was showing a fair degree of short term oversold. Today’s attempt to rally took care of that. I’m still with the frame of mind the contract low of $3.50 ¼ will be challenged sooner vs. later. I will admit there is a fair amount of talk around the possibility of interim season lows over the next 5-10 days. What will be the catalyst for lows remains to be seen. It is the time for better exports – the US Dollar has seen a decent sell off and prices appear to be relatively cheap.
Daily Support & Resistance for 08/30
Sept Corn: $3.38 – $3.47
Dec Corn: $3.53 – $3.62
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.