March corn was down 2 cents late in the overnight session. Outside markets look somewhat negative with continued unrest in North Africa. The market consolidated most of the gains from yesterday overnight and traded in a choppy and two-sided trade. A general fear that the surge in world energy prices will slow global demand growth and spark continued long liquidation selling from commodity markets has helped to pressure. The USDA Outlook Forum begins today and last through tomorrow afternoon. Traders will monitor the situation closely with expectations for a planted acreage number near 92 million acres, up 3.8 million from last year. The USDA left their planted acreage outlook at 92 million acres for the 2011 season with ending stocks projected at just 865 million bushels which would be up slightly from 675 million this year but still considered tight ahead of the growing season. With the tight beginning stocks, it will take a high yield and a jump of near 4 million acres just to hold ending stocks near 1 billion bushels so the recovery process may take more than one year. South Korea bought 55,000 tonnes of corn overnight. The market closed sharply higher on the session yesterday and near the high end of a 37 1/4 cent range. Ideas that the break was overdone and a strong recovery in the other grain markets helped to support. The market saw follow-through technical selling early in the session before buyers emerged to support. March corn fell 67 3/4 cents off of Monday's highs before finding support on ideas that lower prices might encourage increased demand over the short-term. The surge higher in gasoline prices and weakness in corn in the past few days helped to revive ethanol margins and this was seen as a stabilizing force; especially with higher gas prices again overnight. Funds were quiet after aggressive long liquidation selling earlier this week. The turn higher in soybeans and wheat plus a sharp drop in the US dollar were seen as supportive factors as well.
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