December corn was up 3 1/2 cents late in the overnight session. Outside market forces look mostly negative this morning with a strong US dollar and weakness in energy and equity markets. The bounce in soybeans helped to provide underlying support to the corn market overnight despite the weakness in outside markets. A strong cash market with higher basis levels just after harvest has helped to provide underlying support as well, and news that South Korea is tendering for 220,000 tonnes of corn added to the positive tone. The weekly Crop Prgeress report showed that 93% of the US corn crop was harvested as of Sunday. compared to 87% last week and 98% last year. The 10 year average for this time of year is 86%. Ohio is still just 51% harvested, compared with 79% as the 5-year average. The Commitments of Traders reports as of November 8th showed non-commercial traders were net long 238,989 contracts, an increase of 14,903 contracts for the week. The buying trend is seen as a short-term positive force. Non-commercial and nonreportable traders combined held a net long position of 168,996 contracts, up 29,286 contracts. The spec buying trend is supportive. Commodity index traders held a net long position of 331,755 contracts, down 5,242, which was a partial offset to the spec buying trend. December corn closed 5 cents lower on the session yesterday and saw the lowest close since October 10th. Sluggish export news, a stronger US dollar and news that Argentina will allow an additional 400,000 tonnes of exports for the 2010/11 season were all seen as negative forces. A sluggish tone for exports and some concerns over the potential for more long liquidation selling out of December corn where open interest is still high helped to pressure. Total open interest in corn is up 97,703 contracts since November 4th, which might suggest that the 4-day sell-off since the report is not long liquidation selling. Weekly export inspections came in at 27.7 million bushels, which was slightly higher than trade expectations and compares with 34.8 million necessary each week to reach the USDA projection for the year. Cumulative shipments have reached just 15.9% of the forecast for the season as compared with 20.9% as the 5-year average for this time of the year. More talk that US feed manufacturers on the east coast may be importing feedwheat as a substitute for corn plus talk that Brazil may be selling feedwheat to Mexico helped add to the negative tone.
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