Corn Market Recap: 6 October 2011
Dec Corn finished unchanged at 605.50, 11.50 off the high and 1.50 up from the low.
Mar Corn closed unchanged at 618.25. This was 1.25 up from the low and 11.25 off the high.
Dec Corn closed near unchanged on the session and well off of the early highs.
Strength in energy and equity markets failed to bleed over to the grain markets. The market saw some early buying support to drive futures higher early in the session but the set-back in Wheat and choppy trade in the US stock market early today helped spark a set-back into mid-session.
The turn back up in outside markets helped support a bounce back up to moderate gains on the day but the market fell 0.06 late in the day helped by a lack of new buying interest and a sell-of in the other grains.
Stronger than expected export sales and ideas that the recent sharp break is attracting better demand overall for Corn helped to provide support as well.
Weekly export sales for corn came in at 1.289-M metric tons for the current marketing year and 1,800 for the next marketing year for a total of 1.291-M which was near 450,000 above expectations.
As of September 29th, cumulative Corn sales stand at 40.8% of the USDA forecast for 2011/2012 current; marketing year vs a 5 yr average of 30.9% for this time of the year.
Sales of 514,000-M tons are needed each week to reach the USDA forecast.
China was a noted buyer of 57,800 tons. In their first production estimate of the year, Brazil officials pegged the 2011/12 Corn crop at 57.33-58.99-M tons as compared with 57.5-M tons last year.
Nov Rice finished down 0.085 at 15.93, 0.09 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.