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Commentary
The corn market closed higher with support coming from strength in crude oil and demand optimism. Yesterday’s pullback may have stimulated some export demand in my opinion. Wheat ended higher on the day and likely added a measure of support for corn as well. Weekly export sales estimates for tomorrow morning are 800,000 – 2 million tons but they are unlikely to be released. We are now running out of time for the November WASDE crop report to occur on time. Failure to reopen the government by next week would suggest that the November report might need to be delayed, or even cancelled, if we fail to get the government reopened soon. USDA has never cancelled back-to-back reports. December corn nearby resistance is 427 and a move above that level would likely push prices up to much more important resistance at 435. The longer the market is without demand, condition, harvest progress news in my opinion, the impetus for the managed shorts to cover amid the unknowns becomes greater in my opinion. In late breaking news in energy, US government sanctions Russia oil producers Rosneft and Lukoil. Energy prices should they go bid may support corn as well.
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Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
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