Corn Report, 10/28/2016

Friday, October 28, 2016


Corn saw a 3rd straight “up” day and it feels stronger, but we still are only up 5 on the week as whole as fund buying and the bean rally has kept the pressure upward, with CZ closing yesterday at $3.5750 with the funds buying an estimated 10K contracts. Now while this strength is encouraging on the outside, with the amount of short-covering this week and only a 5 cent range is concerning, and $3.60 still looks like a solid ceiling that will take some sort of fundamental event to break. The CZ/CH spread has tightened a bit over the week, trading 8.25 on the overnight, but is a good indication that cash corn is not moving and market’s attempt on opening the faucet. More talk of on-farm and off-farm storage becoming even more an issue is hitting the market, with a combined bean crop and potentially larger than expected corn, space is becoming a serious problem. Looking ahead to today, with the end of the week we could see a bit of a sell off, especially with a solid weekend of harvest, looking for a mixed bag with the potential to test $3.60 but see it being overall weaker. CZ support at $3.5325 then $3.47 with resistance at $3.60 then $3.64.


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