December corn was trading 1 1/4 cents higher around 7:00 am cst. Dalian corn traded modestly higher overnight and closed up 0.09%. The US Dollar traded stronger overnight as the Euro fell as concerns over Greece's debt were on investors' minds. Crude oil and copper are lower as well.
The sluggish pace of export sales continues to be a drag on corn futures in the short term but a worse than expected start to the US wheat planting season is helping support grain prices to start the week. The bounce in ethanol production and corn usage in last week's ethanol production report favors the bulls. Production was up 3% from the previous week and hit a 1 1/2 month high. Corn used in last week's production was estimated at 86.6 million bushels as compared with an average weekly total near 86.55 million bushels. Demand fundamentals remain mixed and offer a neutral bias to market action but investors and traders will be dealing with the Presidential election on Tuesday followed by the a USDA report on Friday. Money flow by managed money and hedge funds could be key to price direction this week along with renewed fears of a Greek default on debt. Volume on Friday was pegged at a whopping 305,618 contracts and open interest declined by 1,471 contracts. The sharply lower trade on Friday, huge volume, and modest cuts in open interest suggest a neutral to bearish bias.
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