Dec closes 1 ¾ cents higher ($3.48), March 1 ½ cents higher ($3.57) and July 1 ¾ cents higher ($3.71 ¾)
November Chgo Ethanol expires 3.0 cents a gallon lower (1.585), Dec 1.5 cents lower (1.518)
Weekly Corn Export Sales – 1.473 M T. old crop vs. 700 K – 1.100 M T. expected – no new crop vs. 0-50 K T. expected
USDA announces 136 K T. corn sold to S. Korea – 432 K T. corn sold to Mexico
Informa suggests the national corn yield is 174.0 bpa leading to a crop size of 15.109 billion bu. – this compares to the October USDA at 173.4 bpa, crop size 15.057
The recent 2-day wave of spec selling abates on Thursday as weekly export sales come in better than expected. Cumulative sales are now running 11.6 M T. better than last year’s sales’ pace. The discussion continues as to whether or not the USDA will show the national yield edging down or edging up on Wednesday, Nov 9th. Outside market influences (lower crude oil, lower US Dollar) led to a mixed day of trading before some late short covering buoyed prices to the plus side to finish the day. Going forward, to at least next Wednesday, I get the impression corn prices will remain in a state of flux until then.
Interior cash corn prices continue to run mixed depending upon location, depending upon its usage. Processors show the best bids while river bids involved for export trade all over the place meaning some lower, some better. Gulf prices continue to show a defensive look. Corn spreads on the day showed minor improvement. In recent days it seems the corn spreads are running with the flat price – if the flat price is firmer the spreads are firm and if the flat price is weaker the spreads in turn are weaker. this suggests to me that we are going nowhere fast in the near term.
Flat price corn registers an inside day of Wednesday’s interim sell signal. The last time we saw an inside day following an interim sell signal (October 25th) the following day the flat price rallied. I’m not saying it will happen again especially ahead of the weekend. Weather looks clear for the final days of harvest. As I mentioned before – corn prices will spin their wheels going nowhere fast going into next Wednesday’s USDA production, supply-demand update.
Daily Support & Resistance Dec Corn: $3.44 – $3.52 ½
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