Corn Commentary
Dec Corn closes ¼ cent lower ($3.47 ¾), March ½ cent lower ($3.61) and July ¼ cent lower ($3.77 ¼)
December Chgo Ethanol closes 0.012 cents a gallon lower ($1.468), Jan 0.004 lower ($1.434)
USDA announces 130 K T. corn sold to unknown
Another slow/lower day for corn trading the as daily price activity ranged from 1 ½ cents to 2 cents. The USDA did have another announced sale for us but it did little to stimulate any noticeable interest. The trade wants to talk about higher production and carryout on Thursday from the USDA and that in turn offsets recent announced sales. With 30% of harvest yet to go no one wants to get too enthused about establishing ownership. Interior cash prices, however, are beginning to tell another story.
Interior cash corn prices if not steady are higher. Corn processors show the best bids followed by improving river prices. The Gulf appears stable as of this writing. Today was the first day of the big boy index fund roll and it was not really apparent as Dec gained fractionally within the crop year. Old crop continues to lose to the new crop.
Range bound trade continues. I’m not sure I can say anything more. If I had to guess the direction of the market ahead of the USDA on Thursday it would be testing recent interim lows vs. testing interim highs.
Daily Support & Resistance for 11/08
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.