Dec Corn finished down 13.50 at 637.25, 18.25 off the high and 4.25 up from the low.
Mar Corn closed down 12.75 at 649.25. This was + 4.25 from the low and 17 off the high. Funds were aggressive sellers for much of the session as some concerns for the Euro debt crises started the selling trend but the trend continued for energy and agriculture markets even when equity markets traded sharply higher on the day.
Rumors that a large brokerage firm may need to exit Long positions in grains, livestock and energy markets if the firm needs to be sold added to the selling pressures seen early.
Dec Corn closed sharply lower and to a 4-session low. A turn sharply higher in the USD and weakness in energy and equity markets sparked Long liquidation selling early; lightening up on risk ahead of European meetings on debt crises, to drive the market sharply lower on the day.
Private exporters reported to the USDA a sale of 100,000 tons of US Corn for unknown destination for the Y 2011/12 season.
Japan bought a cargo of Ukrainian Corn for the first time in over 1 yr and traders believe that if the quality is good, Japan may seek more of their needs from Ukraine this season. Ukraine had a large crop this year and could export near 12-M tons this season as compared with 4.95-M tons last year.
Good weather for the planting season in South America was also seen as a short-term negative force.
Ethanol production for the week ending October 21st averaged 909,000 BPD. This is up 0.11% vs. last week and up 3.3% vs. last year. Total Ethanol production for the week was 6.363-M BPD which is the highest weekly total since June 3rd. Corn used in last week's production is estimated at 96.8-M bu. Corn use needs to average 96.3 per week to meet-M bu this crop year's USDA estimate. Stocks were 17.29-M bbls. This is up 1.4% vs. last week and up 6% vs. last year.
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.