Corn Market Recap: 6 September 2011
Sept Corn finished down 4.25 at 755.75, 3.25 off the high and up 13 off the low.
Mar Corn closed down 4 at 768.25. This was 13 up from the low and 3 off the high.
Dec Corn saw a strong recovery during the session Tuesday trading near the highs of the day into the close but still lower on the day.
The market pushed sharply lower early in the session as speculative long liquidation selling was considered active.
A sharp sell-off in the energy and equity markets and a surge higher in the USD helped to pressure the market.
Thoughts that last Friday's rally may have been overdone helped to pressure too, but the market did remain inside of Friday's range.
Weekly export inspections came in at 24.19-M bushels which was well below trade expectations.
The USD ran to the highest level since July 18th on continued debt concerns for Europe.
South Korea bought 220,000 tons of US Corn over the weekend.
Low yield concerns have helped to provide underlying support. A prominent research firm pegged Corn yield at 151 bu/acre and production at 12.711-B bushels.
In the last USDA supply/demand report, production was pegged at 12.914-B bushels and usage at 13.16-B The estimates are much higher than market expectations at present and this added to the negative tone into the mid-session.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.