Corn Commentary
March Corn closes ½ cent higher ($3.47 ½), July ½ cent higher ($3.64 ¼) and Dec ¾ cent higher ($3.80 ¾)
January Chgo CBOT Ethanol closes 0.001 cents a gallon higher ($1.268), Feb 0.004 cents higher ($1.296)
Tuesday’s corn trade was an instant replay of Monday’s trade; same daily trading range. The only difference was that on Monday we finished fractionally lower while on Tuesday we finished fractionally higher. The old timers will tell you this is a typical “holiday” trade. New direct news was lacking. The weather in SA remains conducive to crop development. There is, however, rhetoric out there that talks about a noticeably lower Brazilian corn crop due to late planting and lower acres. Just like in the US corn is an expensive crop to plant. The Brazilian producer is not any different. US weather is going to turn extremely cold beginning Christmas week which in turn should boost domestic feeding. The bigger question is whether or not it hangs around for a while.
If cash markets are showing any changes they are steady to a shade better at selected locations. It’s all about slow movement; not necessarily strong demand. Corn spreads ran pretty flat on the day; old crop loses fractionally to the new crop.
Charts read lower but the rate of descent is slowing. The last two days of tight daily ranges that are bumping against the contract lows opens the door for an outside day. If we do get an outside day with a higher close it could open the door for some year-end short covering. What would prompt it, however, remains to be seen.
Daily Support & Resistance for 12/20
March Corn: ??? – $3.53
July Corn: ??? – $3.70
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.