Credit: Shutterstock photoThursdays weekly export sales report drew a negative response from futures. The report tells us how much of each grain was sold for future shipment and becomes our best report on demand fundamentals. Corn sales were 142 t.m.t. down 13% from the prior week. Average sales the last four weeks were 159 t.m.t. Average weekly sales for October 2011 were 1.161 m.m.t. and October 2010 569 t.m.t.. The high price of corn in October 2011 was 4.50, October 2011 7.50 and October 1 this year's 7.75. Price rations commodity. That's the purpose of the market. But corn exports are sharply lower than a year ago as a result of world demand for feed grains increasing for three consecutive years lowering our corn ending stocks to historically low levels, while production issues failed to keep pace. The high price is rationing the crop but the government as well has played a role in rationing.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.