May corn was up 3 1/2 cents late in the overnight session. Outside markets look positive today with higher equity markets and a setback on energy prices. There were 10 deliveries against the March contract overnight. The market saw some significant downside volatility yesterday, as there appeared to be some demand concerns emerging at the same time that traders believed that corn was too high prices relative to wheat. Ideas that the high quality of last year's harvest will help slow usage and talk of an overbought condition helped pressure the market. The market had been slightly higher early in the session but closed sharply lower, and July corn had hit new highs for the move. The fact that the market had an outside-day down could have been seen as a negative technical development. The jump in energy prices and continued talk that Brazil is importing ethanol had been seen as factors contributing to the higher opening yesterday, but q weak ethanol production report sparked aggressive selling into the mid-sessiony. Traders said the talk that China and US producers will push to plant more corn this season added to the negative tone. Ethanol production for the week ending February 25th averaged 882,000 barrels per day. This was down for the 5th week in a row and down -0.68% from the previous week but up 5.88% from last year. Stocks came were 19.127 million barrels, which was down -1.15% from the previous week. Traders see corn weekly sales for release this morning as high as 1.1 million tonnes. Sales have exceeded 1 million tonnes for each of the past four weeks with 1.501 million tonnes last week.
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