Corn - Just My Opinion

Dec Corn closed 2.5 cents higher ($3.45.75), March 2.5 cents higher ($3.58) & July 2.25 cents higher ($3.73)

October Chgo Ethanol closed 0.012 cents a gallon lower ($1.255), Nov 0.007 cents lower ($1.267)

Weekly Corn Export Sales old crop (2018-19) vs. 500 k 1.200 M T. expected new crop (2019-20) vs. none expected

Strength elsewhere within the Ag complex pulls corn out of the hole on Wednesday. I did not see any direct news involving the corn market that prompted the small rally. If anything a short term technical oversold condition prompted some speculative short covering. Since Sept 6th when Dec corn was sitting at $3.66 open interest has increased by about 80 K contracts. Yes, the spec trade is a big short so some short covering can be expected. Tomorrow is weekly export sales. Given all of the rhetoric out there that the US is the primary source for world corn right now its time to see some eye-opening sales.

Interior cash corn (basis) continues to show a defensive look. This holds true the Gulf as well. Corn spreads ran flat for most of the crop year; gained fractionally on the 2019-20 crop year.

Does todays price action suggest a low is in place? I dont think so as I need to see a bit more price action to be convinced of that. Weve yet to see a challenge of any significant resistance. The first level of minor resistance is $3.50-$3.52. Resistance gets thicker as we approach the $3.60 level.

Daily Support & Resistance for 09/20

Dec Corn: $3.42 - $3.50

March Corn: $3.54 - $3.62

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.