Dec Corn closed 1 ¾ cents higher ($3.67 ½), March 1 ¾ cents higher ($3.79 ½) & July 2 ¼ cents higher ($3.92 ½)
October Chgo Ethanol closed 0.010 cents a gallon higher ($1.305), Nov 0.005 cents higher ($1.319)
Tuesday brought us a two-sided trade in the corn market. Initially prices were easier in response to ideas of bigger yields. This was offset some by ideas of flooding in areas of the Midwest in the coming days that could impede harvest if not create some crop losses. Areas of concern are eastern Kansas, far eastern Nebraska, northwestern Missouri, all of Iowa, west/northwestern Illinois and the eastern half of Minnesota. The midday rally in wheat (possible halt to Russian exports) had corn prices registering new highs for the current two week old rally. As prices came close to the $3.70 level ($3.69 to be exact) it seemed cash related selling became a bit more intense. What was the most positive to today’s trade was that Dec corn was able to register its best close dating back to Sept 11th.
Interior cash corn locations are steady at worst as a few locations are instituting some minor bump-ups in their advertised basis. The Gulf appears to be steady holding on to recent advances. Despite the higher flat price corn spreads ran fractionally weaker on the day. The fractionally weaker spreads suggest some cash corn is indeed being sold.
Daily closes above $3.70 (Dec) will suggest a test of early August weekly high of $3.74 ¾. Weekly closes above that level would suggest a move something closer to $3.90. It will be interesting to see if anything near this scenario happens ahead of the October 11th production update.
Daily Support & Resistance for 10/03
Dec Corn: $3.63 – $3.74
March Corn: $3.75 – $3.86
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.