To start the week, we saw December corn open 1.25 cents higher on the open. Outside market forces are slightly supportive for the bulls with crude oil trading up 0.70% and at the highest level since February 6. Furthermore, US food and industrial consumption of corn is forecasted at 7 billion bushels this season, which is up 1.6% compared to last year. We think this is due to low corn prices pushing global growth, as well as strong crude oil in a report from JP Morgan. The increase is led mainly by a stronger US ethanol grind, which could be 125 million bushels higher than the USDA’s target or expectation. Total production is estimated at 14.327 billion bushels compared to the previous USDA estimate of 14.280 billion.
MARKET IDEAS: Overall, today’s December corn market remains in a choppy trading range. A close above the 50-day moving average at 351.25 could initiate some short covering, December corn support comes in at 345.75, and then below at 344.25. Resistance is at 351.25 and 359.
Dec ’17 Corn Daily Chart