Corn Commentary
Sept Corn expires 3 ¼ cents higher ($3.41 ¾), Dec closes 2 ¾ cents higher ($3.54 ¼) and March 2 ¾ cents higher ($3.66 ½)
October Chgo Ethanol closes 0.018 cents a gallon lower ($1.545), Nov 0.011 cents lower ($1.497)
Weekly Corn Export Sales – 1.046 M T. old crop (2017/18) vs. 800 K – 1.100 M T. expected
Flat price corn holds on to recent gains but that’s about it. Weekly export sales were pretty much as expected. Currently corn export sales are lagging last year’s sales pace by about 6.5 M T. Thursday was an inside day of Wednesday and Wednesday was an inside day of Tuesday. It still looks like the best support is coming from short covering not necessarily end-user buying. Early yield results continue to be variable; ranging from disappointing to average to good. It will be interesting to see how much harvesting we see this weekend in the harvest ready areas as it looks like we have one of the better rain systems coming into the Midwest later in the weekend into next week.
Interior cash corn markets run unchanged on the day. The Gulf continues to be nothing to write home about. Corn spreads ran unchanged up front, fractionally lower against deferreds. I don’t see anything in the cash markets that would suggest end-users are stepping coverage at this time.
The two consecutive inside days suggests the flat is gearing for a decent move in one direction or another. I’m viewing $3.62 (Dec) as the upside pivot and $3.44 as the downside pivot. With harvest just ahead of us one would think selling rallies is the way to go for the next month or so.
Daily Support & Resistance for 09/15
Dec Corn: $3.46 – $3.60
March Corn: $3.58 – $3.72
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