Corn Commentary
Dec Corn closes unchanged ($3.48 ¾), March ¼ cent higher ($3.62 ¾) and July ¼ cent higher ($3.79)
November Chgo Ethanol closes 0.030 cents a gallon higher ($1.425), Dec 0.011 higher ($1.418)
Weekly Corn Export Inspections – 517.6 K T. vs. 600-800 K T. expected
Weekly Corn Rating & Progress – 66% GE vs. 66% expected vs. 74% year ago – Harvested – 54% vs. 53% expected vs. 72% 5-year average
It was pretty much a nothing day for corn trading; just a 2 ¼ – 2 ½ cent trading range. The market fluctuated from 1 ½ cents lower to 1 cent higher. The tight trading range is goes along with the low volatility. Remember that volatility is synonymous with uncertainty. The corn market is telling us we have very little uncertainty. In other words the market players are certain we have ample supply and not enough demand to offset. A great example of this is the puny looking weekly export inspections. Weekly export inspections are running 4.2 M T. behind last year’s pace while weekly export sales are running 7.0 M T. behind last year’s pace. Some will ask the question “what about the beginning to SA’s growing season?” So far the price action is telling us the crop is getting planted. It is still early in the season; early enough for any concerns to be alleviated.
Not much is happening within the interior cash corn market. Relatively clear looking conditions for harvest has most locations sitting back on their heels waiting (hoping) for the market to come to them. The Gulf market has been firming over the past couple of days due to slow/slack movement. Unfortunately it has done little to help the futures’ spreads as they stay wide.
The trading range affair that started back in early September lives on. The spec trade has a noticeable bias to the short side. An attempt at some month end short covering cannot be ruled out as tomorrow is October 31st.
Daily Support & Resistance for 10/31
Dec Corn: $3.45 – $3.54
March Corn: $3.59 – $3.68
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.