12/14/18 8:15am FREE PRICE LATER IS AVAILABLE AT SIOUXLAND ENERGY
Trade talk is somewhere between 2.5 to 3 MMT’s of U.S. beans purchased this week, and that should be going into Reserve and not for the Chinese crushing industry. Newswires reporting 3 MMT’s of U.S. corn to be purchased next. Since the bean numbers (so far) have been nowhere close to the earlier 5 to 8 MMT’s rumors, the trade is taking a wait and see attitude now.
Corn opened lower and spent most of the night trading slightly lower before rallying over the last hour+ of overnight trade to come into the morning 1-3 cents higher. Expect CH9 to encounter better intraday resistance at $3.88. At 8 AM, the USDA announced the sale of 125K tons of 18/19 corn to Japan.
Bloomberg is reporting that China is preparing to start buying “at least” 3.0 mmt of US corn in January. They also announced a 3-month suspension of the 25% additional tariff on US autos starting Jan 1.
Open interest in corn futures was little changed on Thursday in light volume. Interior corn basis was mixed on Thursday though there were again more declines than improvements. Drops in posted bids ranged from 2-7 cents.
MARCH CORN FUTURES TECHNICALS: Stochastics and the RSI are overbought. First resistance is November's high at $3.90. Second resistance is August's high at $3.98 ¾. First support is November's low at $3.67 ¼. Second support is September's low at $3.54 ¾.
