Corn Commentary
Dec Corn closes 1 ½ cents higher ($3.52 ¾), March 1 ½ cents higher ($3.66 ¾) and July 1 ½ cents higher ($3.82 ½)
November Chgo Ethanol closes 0.001 cents a gallon higher ($1.420), Dec unchanged ($1.412)
Modest follow through buying keying off of Monday’s upside reversal was seen on Tuesday. It appeared to me that most of the buying was related to inter-market spreading; buying feed grains/selling oilseeds. Trade chatter wants to talk about harvest delays but interior basis quotes are not verifying that scenario.
Iowa, Illinois and Indiana corn processors show the best corn bids. As one goes further west basis drops off almost dramatically. River basis locations that feed down to export are sloppy looking. The Gulf eases from last week’s firming. Very little if any changes are being seen in the futures’ spreads. Overall spreads remain wide. If harvest delays were such a big deal nearby spreads would be firming, but they are not.
For the time being the corn market remains stuck in a trading range affair with the downside well defined based on the price action we saw on August 31st, again on October 12th and then again yesterday, October 23rd. I believe the topside is the $3.60 mark but it has not had as much testing as the downside. Short term ideas have the mid to high $3.50’s (Dec) being tested over the near term
Daily Support & Resistance for 10/25
Dec Corn: $3.48 – $3.57
March Corn: $3.62 – $3.71
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.