Dec closes 8 cents higher ($3.54 ¼), March 7 ½ cents higher ($3.62 ¾) and July 7 ¼ cents higher ($3.77 ¼)
December Chgo Ethanol closes 0.1 cents a gallon higher (1.554), Jan 0.1 cents higher (1.498)
Anyone that wanted to cover shorts and/or get long ahead of the national election results and/or the USDA production/supply-demand report tomorrow did so on Tuesday. I’m not sure the election results will have that much direct bearing on the corn market. I do think the more important report will be tomorrow’s USDA numbers as that will suggest either the pile is shrinking or growing.
Interior basis levels are either unchanged or improving. Harvest is winding down in most areas and any buyer feeling that he did get as much bought as earlier anticipated is now raising his bids. The only location that is not changing basis in this manner is the gulf as quotes there are easing. The low cost of freight is being cited. Corn spreads came in on Tuesday in response to the better interior bids as well as the flat price buying.
Longer term corn charts suggest the trend is higher. Prior to today the daily corn charts were suggesting higher prices – after today the rate of descent is trying to shift back higher. since midOctober Dec corn has been in a $3.45 to $3.60 trading range. It now comes down to the what the USDA has to say tomorrow; whether or not this trading range lingers on or we get a breakout one way or the other. I’m willing to take the “wait and see” approach as I learned a long time ago not to force the issue.
Daily Support & Resistance Dec Corn: $3.47 ($3.44) – $3.60 ($3.65)
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