Corn Commentary
Dec Corn closes 3 cents lower ($3.45 ¾), March 3 ¼ cents lower ($3.59 ½) and July 3 cents lower ($3.76)
November Chgo Ethanol closes 0.005 cents a gallon higher ($1.430), Dec 0.018 higher ($1.436)
The corn market spent just about the entire session on Tuesday grinding lower. We still have a great amount of harvesting yet to go (46% as of Sunday) so the adage is why step up, let the market come to me. New news remains lacking in as far as demand is concerned. Spreads tell us the pipeline remains well supplied for the existing demand. Yes, there are some areas that talk about nothing moving but not much is needed to meet the current slack demand. There was some talk that today may bring about some spec fund short covering – it was nowhere to be seen. The bottom line is that there is no real incentive for setting up ownership at this time as supply appears to be more than sufficient and demand is slack at best.
River bids continue to show improvement; elsewhere not so much. The Gulf tries to show improvement but so far has done nothing to suggest that advanced ownership is merited at this time. Dec gains fractionally on March while March forward loses fractionally.
The technical look still suggests the 8 week old trading range remains intact. The low side, once again, appears to be in line to be tested. Probably the friendliest item the corn market has going for it is the amount of spec fund shorts. Unfortunately the trend has been their friend. Nothing in the price action, other than the proximity to the low side of the range, suggests a turnaround is coming any time soon. Tomorrow is the first of a new month – there have been times in the past that when a month ends on an extreme an attempt at trend reversing occurs with the onset of the new month.
Daily Support & Resistance for 11/01
Dec Corn: $3.42 ½ (?) – $3.50
March Corn: $3.56 ¼ (?) – $3.64
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.