December corn was down 5 3/4 cents late in the overnight session. Outside market forces look negative today with a strong US dollar and weakness in energy and equity markets. A lack of progress on debt issues in Europe helped to pressure the market overnight, with December corn moving down to its lowest level since August 9th. Even talk that China may be a buyer of US corn on weakness failed to provide much support. China is expected to sell more corn from their reserves to try to ease inflation as corn prices in China pushed to new highs into their harvest. On top of inflationary concerns for corn in China, the government is also dealing with rising pork prices, which is a key component for inflation in the country. Pork prices pushed to another new record high last week after rising for the 5th week in a row. China corn demand could increase into next year if China rapidly expands the hog herd. December corn closed 9 cents lower on the session Friday and down 44 1/2 cents for the week. The market saw some strength early in the session in reaction to Farm Service Agency acreage data, which suggests lower harvested acres for the October production update. Some traders indicated that the data may suggest that the cut in acreage may be less than the data suggested last month. However, speculative selling emerged again to push the market lower into the mid-session and down to the lowest level since August 11th. Talk of only light damage from cold weather in the northern Midwest last week and ideas that livestock feeders around the world will be leaning toward more wheat and less corn for this year helped to pressure. Traders also see increased harvest pressures in the weeks just ahead. Ukraine harvest is progressing well, and the country is expected to produce 20 million tonnes this year and export near 12 million from 6 million last year. A sharp break in crude oil and a strong US dollar added to the bearish tone on the floor Friday and contributed to the increased selling from speculators. Funds were active sellers into the close to drive the market to a new low for the day into the close. The Commitments of Traders reports as of September 13th showed non-commercial traders were net long 325,601 contracts, a decrease of 28,107 contracts for the week. The selling (long liquidation) trend is seen as a short-term negative force. Commodity index traders held a net long position of 358,628 contracts, down 6,507 for the week.
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