Morning Commentary

Dec corn down ¼ at $3.885

Nov bean u 2 ¼ at $9.14

The DOW is up

USD is weaker

Crude oil up $.52 at $52.97

Good morning,

December corn experienced its second day of light volume consolidation in the upper levels of the recent rally and settled a penny higher on Thursday.  The recent light volume/upper level contraction bodes well for additional gains in the near term.  Preliminary open interest was little changed yesterday as liquidation in Dec was offset by gains elsewhere on the curve.  Total open interest has declined 32,000 lots since the September stocks report.  The trend for December corn is positive.  Stable trade above 377.5 is likely to prompt a rally towards 400.  Closing under 367.5 signals renewed weakness. 

Soybeans: Experiencing a volatile two side trade on account of divergent product markets, November beans fell late Thursday to settle two cents lower on the day.  Preliminary open interest increased 1,900 lots as liquidation in Nov was more than offset by gains elsewhere on the curve.  In the three days following the September stocks report the market rallied 36.5 cents while total open interest rose 10,900 contracts.  The trend for November beans is positive.  Stable action over 912 is bullish for a run towards 940.  Closing under 896 alerts for a setback.  The trade count had the fund buying 2,000 beans yesterday, leaving them short an estimated 47,500 lots. 


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