Sept Corn closed 2 ¾ cents lower ($3.51 ¾), Dec 3 cents lower ($3.65 ¼) & March 2 ½ cents lower ($3.77 ¼)
Sept Chgo Ethanol closed 0.012 cents a gallon lower ($1.291), Oct 0.026 cents lower ($1.297)
USDA announces 101.7 K T. of corn sold to Mexico
The rationale for higher prices on Tuesday wasn’t there on Wednesday. The idea that an Argentine export tax would get the US additional business was offset with the fact that due to Argentina’s poor crop this past season it left them with only limited corn supplies for export. The weather issue that was around yesterday, too wet, calmed somewhat today as rainfall in the near term could still be big but maybe not as big as originally thought. It seemed more focus went to that come next week we’ll be in a much drier trend.
For the most part interior cash corn markets remain on the defensive. We talk about some selected river bids improving but it has to noted that they were out of the ballpark to begin with. Processors are showing the best bids and even those are nothing to write home about. The Gulf edged higher overnight. I’m told this is in response to higher freight. Bottomline – spreads leaked wider today and that’s not friendly.
Most feel Dec corn has some decent support in the mid-$3.50’s and decent looking resistance in the mid-low $3.70’s. What does that leave us – a sideways chop until we see what the USDA has to say on their production update next week, Wednesday, the 12th.
Daily Support & Resistance for 09/06
Dec Corn: $3.61 – $3.68
March Corn: $3.73 – $3.80
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