Dec Corn closed ¼ cent lower ($3.60 ¼), March unchanged ($3.73 ¼) & July unchanged ($3.87)
Dec Chgo Ethanol closed $0.014 cents a gallon lower ($1.200), Jan $0.005 cents lower ($1.232)
Weekly Corn Export Sales – 1.266 M T. old crop vs. 400 -950 K T. expected – no new crop vs. none expected
Flat price corn trades both sides of unchanged only to finish fractionally mixed. Once again we see a big spread trade involving the Dec contract ahead of tomorrow’s 1st notice day. If I didn’t know better what gyrations we saw in the flat price stemmed from the gyrations in the soybean market. The G-20 summit starts tomorrow and whatever the outcome will have some spillover effect on the corn market. Weekly export sales were deemed good based on expectations but then again “they” weren’t expecting much. Overall the corn market continues to be a trading range affair. Many will talk about the plunge in open interest – this is not unusual as far as I’m concerned. The December contract historically carries the biggest open interest. When it liquidates down ahead of 1st notice day not all of it is replaced as many prefer to wait until the New Year.
The interior cash basis is still in a steady to higher trend event though some selected locations are reporting minor easing. The Gulf basis is holding onto its recent gains. Excluding the December contract spreads ran steady on the day. Coming into today there were 1426 tickets registered for delivery. 99% of these are at Ottawa, IL. The basis at surrounding river locations appears strong enough to suggest we may not see these delivered – we’ll know later this evening.
Recent action in the flat price is trying to suggest we’ve gone low enough for now. Unfortunately we’ll have to see how deliveries pan out and more importantly the outcome of the G-20 summit. If it weren’t for 1st notice day tomorrow Friday could be a waste of time. Sunday could be big one way or the other. What’s your opinion of the G-20 summit outcome? (or does it really matter)
Daily Support & Resistance for 11/30
Mch Corn: $3.70 – $3.78
July Corn: $3.84 – $3.92
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