Dec Corn closed 4 ¾ cents lower ($3.66 ½), March 4 ½ cents lower ($3.78 ¼) & July 4 cents lower ($3.93 ¼)
Dec Chgo Ethanol closed $0.021 cents a gallon lower ($1.238), Jan $0.024 cents lower ($1.259)
Weekly Corn Export Inspections – 1.136 M T. vs. 800 K – 1.200 M T. expected
Weekly Corn Crop Progress – Harvested – 84% vs. 87% expected vs. 87% 5-year average
The continued dramatic drop in crude oil spilled over into the grain complex on Tuesday. As of this writing the lead futures contract on crude oil, December, was down $5.00 a barrel. Direct news involving the corn market was relatively slight. Weekly export inspections were deemed solid. Overall the trading range affair lives on.
Interior cash corn markets continue to show a steady to higher bias. Cash corn sales remain quite slow. Freight remains relatively cheap especially for this time of year when normally the riverways are bustling with grain moving to export locations. Despite the stronger looking interior cash markets spreads eased in response to the flat price selling. Dec to March still shows a firm bias whereas March forward spreads continue to widen. The March/July spread set a new contract low with a 15 ½ cent carry.
Although the corn market remains a trading range affair the recent price action is suggesting a test of the suspected interim support at $3.60. Closes below $3.60 will suggest a move to $3.55 followed by $3.50. Since I believe the crude oil market dominated the Ag trade today I have to ask what the crude oil market will bring us on Wednesday. For what it is worth the 14-day RSI on crude oil sits at 13.
Daily Support & Resistance for 11/14
Dec Corn: $3.62 – $3.72
Mch Corn: $3.73 ½ – $3.83 ½
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.