Corn Report, 12/01/2015

Tuesday, December 01, 2015


Corn rallied yesterday 5 cents on the EPA Renewable Fuels Mandate announcement. That prompted funds to buy 17,000 contracts. The EPA announced the 2016 Renewable Fuels Requirement at 18.11 billion gal, compared to this year at 16.93 billion gal. This is an estimated 5.18 billion bushels of corn for 2016 and 5.017 BB this year. The Commitment of
Traders report was also out and was 27,000 contracts shorter than we estimated, making funds short 97,000 contracts. This is supportive because it could give the funds more buying power. Export inspections were poor at 299 TMT, 26% less than last year. Resistance in CH is $3.78 and then $3.84. Support is $3.66 and then $3.64. Yesterday’s rally brought out a little farmer selling and we are seeing some more this morning. We continue with our thoughts of being stuck in a $3.60 to $3.80 trading range for a while. Basis has a general weaker feel to it. CH/CK and CH/CN were slightly wider yesterday.


Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial