Corn futures closed the day lower amid cautious trade ahead of Tuesday's January Crop Production report. Prices spent the majority of the day in the red, but within a very tight trading range. The U.S.D.A. will release crop production and stocks reports Tuesday at 8:30 a.m. EST. Most traders are expecting a reduction in crop size and 2009-10 ending stocks, although they say that weak demand will likely keep the carryout projection from dropping too significantly. Index fund rebalancing, which has been a supportive factor in the market in recent days, is expected to continue through Thursday, according to traders. Fundamentally, the market remains weak, some analysts say. They add that it could take significant outside market support to propel prices past resistance around $4.25.
Soybean futures fell for the fourth consecutive trading day Monday, as speculative selling continued to erode prices amid bearish technical and fundamental outlooks. The market has taken on a bearish persona, looking past a potential reduction in government carryout forecasts on trader expectations that exports will soon drop off as demand shifts to South American origins. As with soybeans, traders are remaining cautious ahead the USDA report that due out tomorrow morning.
~Chris Spurlock
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