Dec Corn closed 2 cents lower ($3.64 ¾), March 2 cents lower ($3.77 ¼) & July 2 cents lower ($3.91)
Nov Chgo Ethanol closes $0.016 cents a gallon lower ($1.257), Dec $0.010 cents lower ($1.275)
Flat price corn grinds easier on Tuesday due to a stronger US Dollar and a lack of fresh bullish input. Given the strength of the US Dollar any exportable US commodity felt its pressure. Harvest is making great inroads in the western belt as rain in the forecast is not until later this weekend. Harvest is already ahead of pace in the eastern belt. What work left to be done the will slow down as what rain is in the forecast for the near term favors the east, southeast of the Corn Belt.
The interior corn basis has developed into an interesting mix. Where harvest is wrapping up basis levels appear to be biased firmer whereas ongoing harvest areas are seeing a weaker basis. The Gulf remains nothing special. Corn spreads ran flat on the day all the way out to Dec ‘19; overall staying relatively wide.
Tuesday’s easier price action is suggesting a test of minor interim support at the $3.62 to $3.60 level. Inter-day charts suggest this level should try and offer some support. Failure to do so would suggest further downside to the mid-$3.50’s. It is my thought that trading will remain relatively slow in a grinding type manner.
Daily Support & Resistance for 10/31
Dec Corn: $3.62 – $3.70
March Corn: $3.74 ½ – $3.82 ½
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