Wednesday, September 16, 2009

So much for the frost scare of 2009?

Corn traded lower in sympathy with the soybean complex and and updated warmer weather forecast for next week. South Korea and Taiwan also passed on tenders for corn because the price was said to be too high. Commodity funds were estimated sellers of 8,000 contracts after buying an estimated 25,000 contracts yesterday.

Soybeans were lower on profit taking and weather. There was support at mid day as outside markets, energy, metals and equities were all firmer on the day.

Tomorrow the weekly export sales report will be released, Corn sales are estimated to be 25 - 35 mbu, beans 22 - 30 mbu. Also USDA will release Cattle on Feed report on Friday, estimates are 98.5% on fee with August placements at 100.9% and marketings at 95.3% vs a year ago. I would also expect that we haven't seen the last of the Frost talk by the trade, we will likely be on this on and off until October 10 or so.

Phil Farrell