Thursday weekly export sales report garnered mixed reviews. The bulls loved the corn sales at 1.762 m.m.t. the highest of the current marketing year which began September 1 and the highest sales number since March 21 of 1.9 m.m.t. China was in for 900 t.m.t. of the total versus 119 the week prior. The bears saw it as a reason to sell the opening high as it was not as bullish as expected with pre-report estimates of 2.2 to 2.5 m.m.t. The market psychology is that corn and bean demand can't live up to what's expected. The market seems to think demand should be exploding. This is not how importers play. Their methodical and buy the dips in prices, not the rally. The reality is demand is already ahead of last year's current pace and will eventually lead to record exports in 2012. Next week is the last full week of October. From the beginning of October we saw grains rally into our monthly highs late last week and this week with beans up 1.25, wheat up. 85 and corn up .92 cents on the month. This leaves Index funds fat with profits and poised to take those profits as next week is the last full week of the month and funds can pay handsome bonuses on profits taken, if taken before the month closes. The wild card as to whether we begin the week lower or higher depends on the success or failure of this weekend's meeting over the European debt crises. Should there be a positive settlement, grains will trade higher. I would use strength to find a selling point. But once the profit taking settles there will be equally a good buying opportunity before the new month rings in November 1. Because the U S D A monthly crop report comes out early November 9. It leaves a short period for traders to get positioned for it. As usual, traders will fear another cut in production or ending stocks and this should give us some measurable move up prior its release .
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