Dec Corn closed 2 ¾ cents higher ($3.74), March 2 ½ cents higher ($3.85 ¾) & July 2 ½ cents higher ($3.99 ½)
Nov Chgo Ethanol expired unchanged ($1.302), Dec closed $0.005 cents a gallon higher ($1.311)
USDA announces 101.745 K T. of corn sold to Mexico
Weekly Corn Export Inspections – 1.254 M T. vs. 700 K – 1.000 M T. expected
Weekly Corn Crop Progress – Harvested – 76% vs. 77% expected vs. 77% 5-year average
After trading two-sided Sunday night corn futures ran firm for all of the Monday day session. The trade is anticipating lower yield reports from the USDA next Thursday, Nov 8th. Stout looking weekly export inspections added to the positive bias as did a lower US Dollar. My only fear is that the trade gets ahead of itself prior to the report (with yet higher prices) and then the report disappoints.
The interior processor corn basis reads a bit easier at Decatur, IL and Cedar Rapids, IA. Most locations elsewhere that I track are reading steady if not better (most river locations continue to improve). The Gulf appears to be holding its own with recent overall improvements. Corn spreads showed steady to fractional improvements within the current crop year (Dec gains while March forward is steady); gaining noticeably on the 2019-20 crop year.
Friday’s close above $3.70 acts as a trigger for follow through buying. We weren’t racing higher but rather grinding higher. the “grinding” type price action suggests hedge type offers are being met. The recent price actin suggests the $3.80 level is now in line to be tested followed by the $3.85 level. As I mentioned earlier my only fear is that the spec trade gets ahead of itself prior to Thursday’s USDA report only to see the USDA give us disappointing data.
Daily Support & Resistance for 11/06
Dec Corn: $3.69 – $3.77
March Corn: $3.71 – $3.89
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.