(IBTimes) - July corn was trading 2 3/4 cents lower late in
the overnight session. China futures were down 0.5%. Outside
market forces look negative again today with weakness in
equities, metal and energy markets and a firm dollar. There were
no deliveries this morning and none so far this month. So far,
the corn market has been able to avoid much in the way of selling
pressures from the events in Europe and weakness across global
equity markets. A surge in basis levels and continued talk that
China is buying US corn on the recent break has helped to
support. Traders indicated that barges at the gulf for May
shipment traded as high as 104 cents over July and set back to 97
cents over by late in the session. This may have been a factor to
spark the set-back in May corn off of the early highs. There was
also talk that Decatur Illinois traded at 70 cents over July.
Corn managed to buck the trend of most other commodity markets
yesterday to see periods of strong gains with July and December
corn closing slightly higher on the day. A sharp break in
soybeans and other financial sensitive commodity markets helped
to pull the market off of the highs. A lack of confirmation from
the USDA on new China demand, better than expected planting
progress and weakness in gold, energy and equity markets were
factors which did not seem to spark much selling. The weather
outlook remains favorable for planting and crop development. May
corn pushed sharply higher and to the highest level since
September 27th before the set-back into the close. Ideas that the
USDA will tighten ending stocks for the report tomorrow morning
helped support old crop. For US ending stocks for the 2011/12
season, traders see stocks near 750 million bushels as compared
with 801 million posted in the April update. For the 2012/13
season, traders see ending stocks near 1.71 billion bushels but
with a range of near 1.2 billion to well above 2 billion bushels.
World ending stocks for the 2011/12 season are expected to drop
to near 122 million tonnes from 122.71 million last month. Stocks
for the new crop season are expected to recovery to near 137
million tonnes.
Original Source:
http://www.ibtimes.com/articles/339067/20120509/pre-opening-corn-market-report-5-9.htm
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