Dec closes 4 ¼ cents higher ($3.49 ¾), March 4 ¼ cents higher ($3.57 ¾) and July 4 ¼ cents higher ($3.71 ½)
December Chgo Ethanol closes 2.5 cents a gallon higher (1.545), Jan 2.1 cents higher (1.480)
Weekly Corn Export Inspections – 875.9 K T. vs. 800 K – 1.000 M T. expected
The short covering that started mid-last week continued on Monday. Outside market strength, primarily the energy sector (crude oil, ethanol), coupled with strength elsewhere in the Ag sector seemed to be the primary catalysts. Weekly export inspections were deemed okay. I have also heard some chatter around the “I” word (inflation) as well as a seasonal suggesting prices rally into Thanksgiving.
Most interior corn basis locations continue with their recent steady to higher trend. Cash corn movement remains modest at best. The Gulf basis, however, continues with its soft look. I am thinking, however, that if Monday’s rally extends itself any further movement just may try and improve. Corn spreads ran unchanged on the day.
The buying that we have seen over the past few days I’m going to call technical in nature. There are always excuses for daily market movement but in this case I haven’t seen anything that is changing the current supply-demand balance sheets. If a market is speculatively short and it has stopped going down the speculative shorts will cover. I think that is what we are looking at right now. We have to remember that technical trading is about 75% of the daily trade. Daily momentum indicators now read higher. Shorter term indicators, however, are starting to develop a minor degree of overbought. That tells me there is no need to chase the current rally.
Daily Support & Resistance Dec Corn: $3.45 – $3.53 March Corn: $3.53 – $3.61
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