Dec Corn finished down 40 at 592.50, 43.50 off the high and equal to the low.

March Corn closed down 40 at 605.75. This was equal to the low and 43.50 off the high.

Dec Corn closed down the 0.40 cent limit and closed down 0.46 for the week. Heavy end of the month and quarter long liquidation selling from fund traders knocked the market back down the limit after numerous recovery bounces off of limit down during the session. The market saw aggressive selling early in the session today to drive the market sharply lower and down the 0.40 limit early in the session.

The market bounced about 0.04 up from limit-down into the mid-session with some commercial buying noted.

The USDA report this morning was considered quite Bearish with September 1st Corn stocks pegged at 1.128-B bu, which was 164-M bu above trade expectations and outside of the wide range of estimates. This is the beginning stocks for the 2011/12 season and plugging in the new number to the supply/demand report and leave all of the other numbers unchanged, ending stocks are adjusted to 836-M bu from 672-M bu posted in the September supply/demand report. In addition, traders are now concerned that global economic conditions could worsen hurting demand further and there is also a more bearish sentiment due to talk that the October supply/demand report might show higher yield and lower usage.

While there is much discussion in grain circles that feed usage for the last quarter was down significantly from trade expectations, the stocks number could be higher than expected due to better than expected ethanol conversion. In other words, it may have taken less corn to produce the 2010/11 Ethanol. The wheat stocks number was also higher than expected so traders have concluded that wheat feeding was below expectations.

Paul A. Ebeling, Jnr.
November Rice finished down 0.13 at 15.95, 0.17 off the high and 0.1 up from the low.

 

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.