Corn Market Recap: 29 September 2011

Dec Corn finished up 1.75 at 632.50, 5.75 off the high and 9.50 up from the low.

Mar Corn closed up 1.75 at 645.75. This was 9.50 up from the low and 5.75 off the high. Even with a break in the US stock market and a rally in the USD, Corn managed to hold on to close slightly higher on the session.

Some Short-covering was noted ahead of a stocks report from the USDA for release before the opening tomorrow.

The market pushed higher early in the session along with the other grains but moved to lower on the day into the mid-session.

A rise in the stock market on news of some relief from the debt crises in Europe plus a rise in energy markets helped support the market early.

Weekly export sales for corn came in at 787,900 metric tons for the current marketing year and 25,000 for the next marketing year for a total of 812,900 which was higher than expected.

As of September 22nd, cumulative Corn sales stand at 37.7% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 yr average of 28.7%.

Sales of 529,000 metric tons are needed each week to reach the USDA forecast. As part of the sales total, China was a buyer of 182,100 tons.

Open interest was down 5,514 contracts on the break yesterday. Traders see increased harvest pressures ahead due to drier weather, higher September 1st stocks estimates for the report in the morning and continued long liquidation selling from funds as reasons for the selling pressures today.

November Rice finished down 0.2 at 16.08, 0.27 off 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.