Dec Corn closed 1 ½ cents higher ($3.66 ¾), March 2 ¼ cents higher ($3.75 ½) & July 2 ½ cents higher ($3.85)
October Chgo Ethanol closed $0.020 cents a gallon higher ($1.330), Nov $0.015 cents higher ($1.305)
USDA announces Corn Export Sales – 207.140 K T. sold to unknown; 110.8 K T. sold to Japan
Weekly Corn Export Inspections – 806.6 K T. vs. 650-900 K T. expected
Weekly US Corn Crop Ratings & Progress – 61% GE (unch) vs. 61% expected vs. 57% year ago – Mature – 75% vs. 65% 5-year average – Harvested – 15% vs. 17% expected vs. 16% 5-year average
After early weakness had Dec corn testing the suspected support at $3.60 prices rebounded as much as 9 cents. Weekly export inspections were deemed okay as they were in the realm of expectations. Inter-market spreading against the soybean market and a strengthening wheat market provided most of the rallying support (my opinion).
The interior corn basis has taken i=on a mixed look. Lincoln, NE is 5 cents better, Cedar Rapids eases 3 cents after rallying 13 cents last week, Davenport, IA is 2 cents better while Council Bluffs, IA is 3 cents easier. The Gulf remains strong. The upfront corn spread widens while March to July ran steady to fractionally easier. The old crop/new crop spreads ran noticeably firmer. As I’m sure most of you are aware the July/Dec spread is nearly a mirror image of the flat price performance.
All last week it was the trade consensus that Dec would correct to $3.60 and then find support. We traded to $3.60 ½ and then rebounded. Despite the rebound the price action is still suggesting we are in a correction mode. Based on last week’s price action $3.75 is the new minor resistance. Harvest yield results (still 85% to go), export sales and the value of the US Dollar will dictate direction going forward.
Daily Support & Resistance – 9/29
Dec Corn: $3.62 – $3.72
March Corn: $3.71 – $3.81
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