Comments about Corn from Leffler Commodities ( Friday 07/13/2012 ).

Discussion in 'Commodity Futures' started by kanellop, Jul 17, 2012.

  1. kanellop


    Hello to All.

    In the Afternoon News on Friday 07/13/2012 ,

    in the Leffler Commodities that published here: ,

    exist some Comments relative to Corn.

    Here are:

    1) The corn price rallied overnight and into the opening of the day session. Sellers stepped into
    the corn and erased some of the strong gains until the close when buyers returned.

    2) Weather remains the key to the higher corn prices. For the short term, any large amounts of
    moisture stay in the fringe areas of the Corn Belt. Iowa received small amounts overnight and
    into today. The north and the southeast have the best chances for rainfall. In the current
    production phase, corn requires .33 of an inch on a daily basis for good kernel formation. This
    is not happening and the moisture profile is of no assistance.

    3) The extended forecast, both the 6 to 10 day and the 11 to 15 day call for above normal
    temperatures and normal rainfall. Traders place only a small amount of confidence in any
    weather forecast that mentions rain.

    4) The dryness in the Corn Belt is moving west across the Mississippi River. Iowa has been short
    changed in the recent days on moisture. The rain is staying north of this state.

    5) There was a recorded corn sale to Mexico for 120,000 metric tons. This was listed as non-U.S.
    corn. The competition in South America is securing the current corn export business.

    6) Informa presented their production thoughts using "assumed growing weather through July".
    They assume weather is half of normal precipitation and temps 5 degrees above normal for the
    rest of the month. Under that scenario, they see corn production at 12.5 billion bushels and a
    yield of 142.5 (harvested area would drop 1.2 mil). ONE ANALYST’S THOUGHT!

    7) Today’s close is then highest in the December corn contract. Momentum is to the upside.
    Look for continued advance in the corn price next week or until heavy rains show up on the

    Kind Regards,

    George Kanellopoulos.