December corn was up 2 cents late in the overnight session. Outside market forces look slightly positive today with a weaker US dollar but choppy trade for financial and energy markets. The market absorbed a period of weak economic news for the global economy with sideways action in recent days, strong cash markets plus better than expected export news has helped to provide good support. Continued talk that the market cannot afford to see yield come in any lower than the recent USDA update continues to provide underlying support as well. China released millions of tonnes of corn from state reserves in the past two years and the shift to a restocking posture leaves the 2011/12 demand uncertain. Some traders see demand moving up rapidly in the next year as China attempts to expand the hog population rapidly and also restock reserves. Similar to the soybean market, bull spreads were the feature of the session yesterday as nearby futures gain on deferred. Cash markets remain remarkably strong into the heart of the harvest, which has helped support the flat price and the spreads. A lack of producer selling and some increased support from end users on the early break were seen as supportive factors, helping it to close higher on the day and well up from the early lows yesterday. A turn up in the US stock market and energy markets helped break the bearish psychology that seen across many commodity markets and allowed soybeans to make a solid recovery off of the early lows. China GDP numbers showed growth of just 9.1%, not the 9.3% expected. This was the slowest growth in two years ands parked a negative tone for commodity markets yesterday. Weekly export inspections, released during the session yesterda, came in at 21.17 million bushels, which was well below trade expectations and below the 34.2 million necessary each week to reach the USDA projection for the year.
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