Corn Commentary
Dec Corn closes 1 ½ cents lower ($3.48 ½), March 1 ½ cent lower ($3.62 ¼) and July ¾ cent lower ($3.77 ¾)
November Chgo Ethanol closes 0.017 cents a gallon lower ($1.411), Dec 0.011 cents lower ($1.404)
Weekly Ethanol Grind – 1.019 million bpd vs. 967 K previous week – Stocks – 21.5 million bbls vs. 21.5 previous week
Weekly Corn Export Sales – old crop vs. 800 K – 1.100 M T. expected – new crop vs. none expected
It was an extremely slow (and low) day for corn trading. Daily trading ranges were less than 3 cents. This goes hand in hand with the lower implied volatility. For the time being I see nothing out there that will get the corn market out of the doldrums. Supply is beyond sufficient and we don’t have enough demand to offset. The daily chatter continues to talk about potential problems with the Brazilian corn crop but so far all it’s nothing but chatter. Weekly export sales will be out in the morning but expectations look like nothing to write home about.
Most interior cash corn locations are quiet. I say most as last night Decatur, IL jumped their corn bid by 11 cents. I have not seen other locations following their lead. The Gulf market appears less than inspiring. Corn spreads stay wide.
It looks like my trading affair idea is about to get challenged. I know the market made new contract lows ahead of last week’s USDA production update but reversals followed. Those reversals are now in line to be challenged. Anyone that is trying to be friendly to the corn market or going with the trading range idea will not want to see Dec corn close below $3.45. Why $3.45 – that would be a new contract low close.
Daily Support & Resistance for 10/18
Dec Corn: $3.46 – $3.54
March Corn: $3.59 – $3.67
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.