Dec Corn closed 1 ½ cents higher ($3.71 ¼), March 1 cents higher ($3.82 ¼) & July 1 ¼ cents higher ($3.97 ¼)
Dec Chgo Ethanol closed $0.007 cents a gallon lower ($1.269), Jan $0.007 cents lower ($1.292)
Flat price corn spends the majority of its day session being quietly firm; trading mostly in a 1 ½ cent range. The day’s entire trading range, 4 ½ cents, was set in the Sunday night session. I have to wonder where the corn market would had been if the Chgo wheat hadn’t been sharply stronger. I know the trade wants to believe we will have better export business as we move into the 1st quarter of the New Year. So far, however, I haven’t seen any indication of that happening. Last week’s “friendly” looking crop report was all about a cut in supply not an increase in demand. Demand was actually cut from the US while our exporting competition saw their demand increase.
Most interior cash corn locations are reporting better basis levels as we begin the new week. I’m not sure this is about market making demand vs. relatively slow movement. The nearby Dec gains on the spread. I think this is more about short covering ahead of 1st notice day vs. better demand ideas. March forward spreads ran steady to fractionally softer.
The daily chart picture for corn prices continues to advertise a trading affair. The interim double top against $3.79 along with the succession of higher lows sticks out like a sore thumb suggesting some vulnerability in the near term. Daily momentum indicators, which had been reading higher prior to late last week, are now starting to waffle suggesting it would not take much to get them decidedly lower. For the time being I’m content to treat the corn market as a trading range affair which currently has prices almost in the middle of the suggested range; $3.60 to $3.80.
Daily Support & Resistance for 11/13
Dec Corn: $3.66 – $3.75
Mch Corn: $3.77 – $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.