Corn Commentary
March Corn closes 1 ¾ cents lower ($3.52), July 1 ½ cents lower ($3.69) and Dec 1 ¼ cents lower ($3.85 ½)
January Chgo CBOT Ethanol closes 0.0011 cents a gallon higher ($1.307), Feb 0.015 cents higher ($1.340)
Weekly Ethanol Grind – 1.090 million bpd vs. 1.077 last week – Stocks – 22.0 million bbls vs. 22.3 last week
Weekly Corn Export Sales – old crop 600 K – 1.100 M T. expected – new crop 0-50 K T. expected
If Thursday’s corn trade is any indication as to how we are going to end the year tomorrow we’re going to go out flat hovering above contract lows (currently 5 cents above). We know the managed fund sector is a healthy short. I’m told index funds will have to be a seller with their rebalancing efforts. Put the two together and it suggests a stand-off (at least for the near term). Towards the latter part of next week the trade will begin to focus on the various USDA Jan 12th reports. Early ideas suggest a slight bump up in last season’s yields. Demand data suggests excellent domestic usage while exports are questionable. Once we get past these USDA reports the trade’s focus will once again return to SA corn growing conditions.
Interior cash corn markets, for the most part, show a firm bias. Yes, we had a couple of locations ease this past week but we also had some locations firm in the past week. The Gulf market has a definite firm bias. The underlying firm tone is not about excessive demand; it’s about a lack of producer selling. Many believe that will change once we get into the New Year. Corn spreads ran mixed to slightly easier on the day.
Daily Support & Resistance for 12/29
March Corn: $3.48 – $3.55
July Corn: $3.65 – $3.72
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.