Grain Markets to Find Direction from USDA Reports

September 9, 2011 10:31 AM

This information is provided by Archer Financial Services, Inc., 800-933-3996.

It was a week of position evening ahead of Monday’s latest update of the Supply and Demand picture as well as production updates.

December corn settled 23.5¢ lower near the 30% retracement level of the move from the August lows to its highs. The soybean market, which saw an unprecedented surge in fund buying over the past two weeks, finally ran into some profit taking and settled the week nearly 20¢ lower. The grain markets will find their early week direction from Monday’s release of updated production data.

Also closely watched will be signs of any demand destruction that may have taken place over the last month as prices surged to new highs. There will undoubtedly be a violent reaction early next week as the grain markets react to the updated data, but any larger move from the recent trading range may not occur until the October production data is available to the market.

It is unlikely that many changes are going to be made to the acreage figures this month, although most in the trade feel that adjustments to both the planted acres as well as the harvested acres are warranted. This places a larger importance on the October estimates.

Look for the market to remain range-bound over the next month as it is trapped by solid demand below the market and limited buyers as it tests the upper end of its range.







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