Corn Market Recap: 7 September 2011
Sept Corn finished down 7.75 at 748, 17 off the high and 4.25 up from the low.
Mar Corn closed down 7.50 at 760.75. This was 3.75 up from the low and 16.75 off the high.
Dec Corn closed moderately lower on the session and down 0.17 from the highs to sour the chart pattern slightly.
Talk of seasonal harvest pressure for the cash market ahead and demand concerns due to high prices helped to spark some selling.
The market pushed moderately higher on the session early today with deteriorating crop conditions and supportive outside market forces helping to support.
A weak USD and higher energy and equity markets were seen as positive forces.
Weekly crop conditions fell 2% this week to just 52% good to excellent from 69% last year.
A lack of deliveries against the Sept. contract and the outlook for a tightening stocks situation for the coming season remains as the Key Bullish force.
There is a wide range of yield and production estimates emerging for the report Monday and some traders indicate that this is one reason for the increased volatility.
For example: 2 Key research firms had estimates yesterday of 12.711-B bushels and 12.022-B bushels. The 689-M bushel difference compares with the current ending stocks estimates of 714-M bushels.
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.