March corn was up 2 1/4 cents late in the overnight session.
Outside forces look mixed to slightly positive. The corn market
continues to consolidate near the January 21st highs, but it came
under pressure yesterday from sluggish weekly export sales.
Traders see that high world corn prices sending demand to
Australia feedwheat as a reason for the slower US corn exports.
Traders remain very sensitive to short-term demand factors with
extremely tight projections for US corn ending stocks. A sell-off
in the wheat market along with some general weakness in energy
and gold yesterday sparked a long liquidation sell-off in corn
that it close moderately lower with an inside trading session.
The market saw a long liquidation selling trend develop shortly
after the opening that pushed corn sharply lower on the session,
as a slower than expected export sales report and weakness in
outside markets sparked increased selling. Weakness in wheat and
talk of the overbought condition of the market added to the
negative tone. Weekly export sales for corn came in at just
414,700 tonnes for the current marketing year and 132,800 for the
next marketing year for a total of 547,500 tonnes. As of January
20th, cumulative corn sales stood at 56.7% of the USDA forecast
for the 2010/11 season, compared with the 5-year average of 57.9%
sold for this time of the year. Sales of 670,000 metric tonnes
(old crop) are needed each week to reach the USDA forecast. News
that two cargos of corn had been shipped to Spain from Canada in
the last month suggests tightness in feedgrains in Europe, as
Canada is normally an importer of corn and Europe normally has
easier access to feedwheat from Eastern Europe and Russia. India
was a noted seller of 25,000 to 30,000 corn, offering it at lower
prices than South America corn. Ukraine sold Russia about 100,000
tonnes of corn.