Corn Market Recap: 9 September 2011

Sept Corn finished up 2.50 at 736.50, 4 off the high and 6.25 up from the low.

Mar Corn closed up 2.50 at 749.25, + 6 from the low and 3.75 off the high.

Dec Corn closed 2.5 cents higher on the session but down 23.5 cents ahead of the USDA Crop Production and Supply/Demand report for release Monday morning.

More talk of frost concerns for next week helped to support the market despite the Bearish influences of the stock market, the USD and the energy markets.

Weakness in outside market forces helped to limit the buying support early in the session. A move to the highest level since mid-March for the USD added to the negative tone.

Better than expected export news plus some talk of frost possibilities for the northern Midwest for late next week helped to support.

For the report Monday morning, traders look for lower yield and an adjustment lower in production of about 400-M bu. But, ending stocks are expected to drop by only about 75-M bu from 714-M bu projected last month. As a result, the USDA is in a position of having to push down usage numbers.

Weekly export sales for Corn came in at 820,600 metric tons for the current marketing year and 50,000 for the next marketing year for a total of 870,600 which was near expectations.

As of September 1st, cumulative Corn sales stand at 29.9% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 yr average of 23.3%.

Sales of 596,000 metric tons are needed each week to reach the USDA forecast. In addition, private exporters reported a sale of 127,506 tons of US Corn to unknown destination.

November Rice finished up 0.5 at 18.33, equal to the high and equal to the low.


Paul A. Ebeling, Jnr.



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.