December corn was down 1/4 of a cent late in the overnight session. Outside market forces look mostly positive today with a recovery in equity markets overnight and weakness in the US dollar. Metal market weakness, especially copper, is seen as a sign of weakening global demand. The market has traded in a fairly tight range for the past six trading sessions, as a tight US supply and very strong cash markets for this time of the year clash with an active harvest and increasing demand concerns. Talk of higher production in Europe and South America plus an abundant supply of cheaper feedwheat on the world market have raised concerns over demand. A prominent European grain analytical firm raised their European maize crop forecast to 63.4 million tonnes, which is up 1.5 million from last month and up 15% from last year. South Korea seeks 110,000 tonnes of feedwheat. A lack of a weather issues so far in South America has been seen as a negative force. The market closed moderately lower on the session yesterday and down 13 cents from the early peak, as fears of a global economic slowdown helped spark fund selling in corn and other key commodity markets. Slow producer selling, some harvest delays and strong demand news from the weekly ethanol production update lent support. The market still managed to push to a five session peak before the break. Ethanol production for the week ending October 14th averaged 908,000 barrels per day. This was up 5.58% from the previous week and up 3% from last year, and it was the highest since early August. Corn used in last week's production was estimated at 96.7 million bushels, compared with 96.3 million bushels per week needed to meet the USDA projection.
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