After weeks of corn trading lower, expect some change.
For seven consecutive Mondays, we have seen the price of corn trade lower than the prior Friday trade.
Weekend harvest news and related harvest weather results don't show up until the Monday afternoon crop progress and condition reports. Traders price that in on the Monday night trade session into Tuesday.
The Sunday night electronic trade and Monday daytime session opening is based on news that is coming from foreign ports and the European debt crisis. Agricultural news out of the U.S. is at a standstill as the weekend sees closings for the USDA and other key agricultural related businesses, while the European community continues to operate.
This sets up an opportunity to come in Monday looking for another lower Monday opening. You may want to be a buyer of corn ahead of the USDA monthly crop production supply demand report due out 7:30 a.m. (Central) Wednesday.
WHAT TO EXPECT
Expect a price rise in corn. The report is expected to show a drop in production and ending stocks inventory. The government may address the production side, with lower yields after the fourth hottest and driest July occurred as corns key pollination stage was under way. Harvest is now unveiling this.
The adjusted report is expected to lower the acres planted and harvested as a result of spring planting season flooding in the Midwest.
The demand side could show an increase in exports and usage cutting ending stocks. The October cattle on feed report showed 5% more cattle were placed on feed to fatten up on corn. The first three weeks of October, averaged 1.43 million metric tons of corn exported weekly versus the September average of 588 thousand metric tons.
December corn could easily test 6.80 to 7.10 area.