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NCcorntrader
Senior Contributor

Evening Trade 8/16

Great move up off of the 713 open this morning, but as always, the question is where do we go from here? Better volume today but still below average. There seems to be a good amount of confusion out there as to what is driving price (up or down) in this market.

 

1930 ET

 

Looking at 726 and change right now. No real volume to speak of.

 

** my take ** - I think this continues to be a range trading market. It seems to have been that way for weeks now. Sure there was a gap up a few days ago but now we just seem to be in a new range. There are supply questions about acreage, yield, etc., but it seems clear to me anyway that demand is diminishing. Cash prices are down, ethanol is paying less, etc. Without any true direction one way or another this market wants to play 10 to 15 cent swings in either direction. IMO we are looking at a 710 to 730 range right now. 

 

2200 ET

 

Currently sitting at 727 and change. Very few contracts trading hands.

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2 Replies
Palouser
Senior Advisor

Re: Evening Trade 8/16

The idea that ethanol is paying less leads to less demand for corn doesn't necessarily make sense to me. As long as ethanol CAN make money they will be just like farmers IMO, at least if it is due to lower margins due to higher priced corn. You make more on more rather than less on less.

 

 

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NCcorntrader
Senior Contributor

Re: Evening Trade 8/16

I agree the dynamics of ethanol vs price are more complicated than a simple demand issue. However, most who trade corn are surely looking at the prices they are willing to pay as one factor of many. 

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