Corn Commentary
Sept Corn closes 3 cents lower ($3.46), Dec 3 cents lower ($3.60) and March 2¾ cents lower ($3.72 ½)
Sept Chgo Ethanol closes 0.0 cents a gallon lower ($1.5), Oct 0.014 cents lower ($1.4)
Tuesday’s corn trade was similar to Monday’s corn trade; 2-3 cents lower. It seems like the ongoing Farm Journal Midwest Crop Tour is not finding enough to refute what the USDA had to say on August 10th or at least the daily trade is not paying attention to it. It seemed to me what yield checks I saw being reported were coming in below what the USDA had to say but apparently it is falling on deaf ears. The continued drive south with wheat prices has to weigh on corn prices. The bottom line is that it appears no end user is willing to step up and establish any coverage. They are using the adage “the trend is your friend”. I can’t argue that when the trend is clearly lower.
Interior cash corn bids continue to show a firm bias as movement just isn’t happening. Corn spreads continue to show a widening bias. If cash markets are going to stem the slide then cash markets will have to continue to strengthen to the point they are offsetting the lower futures’ prices and so far that is not happening.
I wish I could say the price slide has achieved a state of oversold – it has not. So far the price action has yet to show any evidence of a climax as the path of least resistance continues to be lower.
Daily Support & Resistance for 08/23
Sept Corn: ??? – $3.54
Dec Corn: $3.58 ½ (?) – $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.