Corn Takes Out Major Support Overnight...
Dec 06, 2011
· Grains mostly lower overnight led by corn, which penetrated major support at 5.86 (Oct low) in the March contract
· Outside markets mixed
· State level data shows Ohio corn harvest advanced 4% to 80% last week; Ohio was finished harvesting corn last year, 5 year average at 97%
· Australian government estimated wheat production there at 28.3mmt, up 8% from Sept estimate; Last year’s crop was 29.9mmt
· Informa raises China corn production estimate to 190mmt vs. USDA estimate of 184.5mmt
· CFTC unanimously approved on Monday tighter limits on how brokerage firms can use customer fund
· Argentine corn and soy crops are in good shape, however forecasts for several weeks of dry weather could affect growth
· Major US Farm groups said they strongly supported bringing Japan into talks among the US and 8 other Asia Pacific countries on a regional free-trade agreement
· USDA report on Friday morning at 7:30am CST; Pre-report trade guesses out tomorrow
Negative news for the corn market continues to pop up. Larger estimates for both Chinese and South American corn production, along with poor export demand, has taken its toll on the market. March corn traded below a major support area overnight. A close below 5.86/March would certainly open the door to another leg down.
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