December corn was up 6 3/4 cents late in the overnight session. Outside market forces look positive again today with a weak tone for the US dollar and strength in energy markets. Since the surge higher on Friday morning to 665 1/2 for December corn, the market has seen choppy to lower trade, and even with all of the bullish input from outside market forces, the market has been unable to take out these highs. Beside the restocking by China, export demand is slow as new buyers appear to be looking at other corn origins and feedwheat. In addition, spot basis bids were a bit weaker at processors and river terminals yesterday, suggesting at least some movement of corn on the market from harvest. The weekly Crop Progress report showed that 65% of the US corn crop was harvested as of Sunday, compared to 47% last week and 81% last year. This was a big jump for one week but still below trade expectations. Progress was rapid in the west, while Ohio was only 14% harvested, compared with a typical pace for this time of year of 41%. Heavy rains hit Ohio over the weekend, and more is in the forecast this week, which may stall the harvest for the eastern Corn Belt until November. The crop is rated 54% good/excellent compared to 53% last week. The 10 year average for this time of year is 69%. Yesterday, for the second session in a row, December corn closed just slightly higher on the day and well off of the early highs. The inability of the market to move above Friday's highs on the early rally and concerns for growing competition for US corn helped to pressure. While the soybean market pushed to new highs for the day into the mid-session, corn was pushing to new lows for the session. Ideas that the reaction to better news on the European debt crisis may have been overdone helped limit the early advance, and soybean/corn spreading was noted. Talk of cheaper corn and feedwheat in the Black Sea region also helped to limit the advance. Weekly export inspections, released during the session yesterday, came in at 29.4 million bushels, which was in line with trade expectations. Corn exports need to average 34.35 million bushels per week to reach the USDA projection for the year. The China National Grain and Oils Information Centre believes that China will import 5 million tonnes of corn this year, four times more than last year.
Join the Discussion