Corn Market Recap: 26 September 2011
Dec Corn finished up 9.50 at 648, 5.25 off the high and 18 up from the low.
Mar Corn closed up 9.25 at 661.25. This was 17.75 up from the low and 5.25 off the high.
Dec Corn managed to close higher on the day after first trading down to the lowest level since July 12th and also closed back over the 200-Day Moving Average.
A recovery in the stock market and a move higher on the day for Crude Oil helped to support the bounce.
The upside may have been limited by talk of some rain in the forecast for Argentina and talk of increased harvest pressures ahead with dry weather this week in the western Corn Belt and dry weather beginning Wednesday for the eastern Corn Belt.
The market traded down as far as 630 overnight but recovered to close back up to 648. A strong recovery in equity and energy markets plus a surge higher in livestock prices today helped to support the market.
Talk of the extreme oversold technical condition of the market after recent steep losses and relative strength below 16 this morning added to the technical support today.
Weekly export inspections came in at 34.3-M bu which was above trade expectations and above the 33.8-M bu average needed each week to reach the USDA projection.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.