Corn Market Recap: 13 September 2011
Dec Corn finished down 22.50 at 723, 26.25 off the high and 6.25 up from the low.
Mar Corn closed down 22 at 736.50 This was 6.25 up from the low and 25.50 off the high.
Increased harvest pressures helped to push cash basis levels lower and the lack of new buying support helped turn the market lower.
The market saw some choppy trade early but then developed a significant long liquidation selling trend from speculators.
A lack of new commercial buying under the market and speculative selling helped drive the market sharply lower and to the lowest level since August 19th early in the day.
Crop conditions improved for the weekly update and Iowa good to excellent readings were up 2% and this may have added to the negative tone.
Ideas that early yields are not as bad as feared plus talk that conditions are not worsening helped to pressure.
The move under yesterday's lows was also seen as a negative technical development; especially since there was a USDA key report yesterday.
Weakness in wheat added to the negative tone and talk of cold weather for later this week plus the positive action for outside markets higher Crude Oil, higher livestock prices and a lower USD.
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.