Corn opened Monday’s session lower and extended session losses throughout the night but managed to trim losses into the close of the day session. Early selling was tied to news that Silva was reelected in Brazil, which in turn pressured the Brazilian Real. Light selling was tied to USDA coming clean and admitting a processing error in calculating the Sept corn yield numbers for KS, NE, and the nation. But they stand behind their Oct estimate. The trade has lost confidence.
Harvest pressure and fund long liquidation added pressure, as did last week’s disappointing export shipments estimate. Corn shipments are 8% behind last year’s pace. Reports that Ukraine is seeing 25% higher corn exports than last year added selling pressure. As of Oct 23, Brazil was reporting the first crop corn planting progress at 69% complete vs 59% last week and 63% average.
In Tuesday’s session corn opened steady but slipped to trade with small losses through the night. Selling pressure expanded once the day session kicked into gear, pushing corn to end the session close to major support. Like wheat, it appears that traded are reluctant to go long corn as most are fearful of being stuck if a peace deal does occur between Ukraine and Russia. Harvest pressure continues to add pressure. Dr Cordonnier left his corn production estimate for Brazil and Argentina unchanged this week. Brazil is estimated at 140 MMT while Argentina is estimated at 60 MMT. The US Ag Attache for Argentina is estimating corn production at 62 MMT vs 60.5 MMT previously and vs USDA projection of 55 MMT. Technically corn closed close to minor support.
Corn opened steady in Wednesday’s session and managed to extend session gains overnight and bucked the trend of the other grains and continued to trade with small gains during the day session. Technical buying helped give corn support like the other grains, corn is in an oversold market condition and in desperate need of a correction. This is the second time corn has bucked the trend of the other grains and gone rouge posting gains while the other faded lower. Light support was due to weather forecasts calling for warm wet conditions to dominate the Corn Belt over the next two weeks, which will result in a dramatic slowdown in harvest, if realized. Technically corn was able to bounce off long term support. Corn has dropped over $1 from Sept highs.
Last week’s ethanol production estimate was friendly corn showing production at 1.118 million barrels, up 24,000 barrels from the previous week. Stocks were estimated at 24.52 million barrels, down 35,000 barrels from the previous week.
In Thursday’s session corn opened steady in the overnight and continued to trade in a tight range throughout the night. Early support is coming from weather forecasts calling for rain for the Corn Belt over the weekend, which will once again slow harvest. Light support came from technical buying as corn was able to bounce off major support yesterday. Selling continues to come from production concerns and whether the US will be able to meet demand expectations, especially if SA has another bumper crop, which traders are worried about due to the early planting progress with soybeans. Corn was able to shake off early selling pressure with support spilling over from the higher wheat complex. Another decent export sales report added support.
Dec corn support is at $4.47 (contract low is at $4.2575).
For the week, Dec corn was at $4.4775 down 8.25 cents. Mar corn was at $4.61 down 9.25 cents.
For the month, Dec corn was down 53.0 cents. Mar corn was down 54.5 cents.
Corn Weekly Comments October 30
Corn Weekly Comments October 30
Corn opened Monday’s session lower and extended session losses throughout the night but managed to trim losses into the close of the day session. Early selling was tied to news that Silva was reelected in Brazil, which in turn pressured the Brazilian Real. Light selling was tied to USDA coming clean and admitting a processing error in calculating the Sept corn yield numbers for KS, NE, and the nation. But they stand behind their Oct estimate. The trade has lost confidence.
Harvest pressure and fund long liquidation added pressure, as did last week’s disappointing export shipments estimate. Corn shipments are 8% behind last year’s pace. Reports that Ukraine is seeing 25% higher corn exports than last year added selling pressure. As of Oct 23, Brazil was reporting the first crop corn planting progress at 69% complete vs 59% last week and 63% average.
In Tuesday’s session corn opened steady but slipped to trade with small losses through the night. Selling pressure expanded once the day session kicked into gear, pushing corn to end the session close to major support. Like wheat, it appears that traded are reluctant to go long corn as most are fearful of being stuck if a peace deal does occur between Ukraine and Russia. Harvest pressure continues to add pressure. Dr Cordonnier left his corn production estimate for Brazil and Argentina unchanged this week. Brazil is estimated at 140 MMT while Argentina is estimated at 60 MMT. The US Ag Attache for Argentina is estimating corn production at 62 MMT vs 60.5 MMT previously and vs USDA projection of 55 MMT. Technically corn closed close to minor support.
Corn opened steady in Wednesday’s session and managed to extend session gains overnight and bucked the trend of the other grains and continued to trade with small gains during the day session. Technical buying helped give corn support like the other grains, corn is in an oversold market condition and in desperate need of a correction. This is the second time corn has bucked the trend of the other grains and gone rouge posting gains while the other faded lower. Light support was due to weather forecasts calling for warm wet conditions to dominate the Corn Belt over the next two weeks, which will result in a dramatic slowdown in harvest, if realized. Technically corn was able to bounce off long term support. Corn has dropped over $1 from Sept highs.
Last week’s ethanol production estimate was friendly corn showing production at 1.118 million barrels, up 24,000 barrels from the previous week. Stocks were estimated at 24.52 million barrels, down 35,000 barrels from the previous week.
In Thursday’s session corn opened steady in the overnight and continued to trade in a tight range throughout the night. Early support is coming from weather forecasts calling for rain for the Corn Belt over the weekend, which will once again slow harvest. Light support came from technical buying as corn was able to bounce off major support yesterday. Selling continues to come from production concerns and whether the US will be able to meet demand expectations, especially if SA has another bumper crop, which traders are worried about due to the early planting progress with soybeans. Corn was able to shake off early selling pressure with support spilling over from the higher wheat complex. Another decent export sales report added support.
Dec corn support is at $4.47 (contract low is at $4.2575).
For the week, Dec corn was at $4.4775 down 8.25 cents. Mar corn was at $4.61 down 9.25 cents.
For the month, Dec corn was down 53.0 cents. Mar corn was down 54.5 cents.