Sep27

Schwieterman Update 9/27: December Corn Approaching the $7.18 Support

on September 27th, 2012 at 7:41 am
Posted In: A, Cattle, Crop Production, Market Information

Corn                                        Estimated Fund Position

Trends

Short Term: Down                  Net Long Futures and Options: 188070

Long Term: Down                  Change: -18000

Overnight Trade: Z -5 @7:30 AM

The December corn is getting closer to the $7.18 support. The overnight low is $7.19 ½. Traders are still afraid of what USDA might come up with in tomorrow’s report and there is still talk about harvest pressure. It doesn’t help that the ethanol production figure was down yesterday and export sales were a pathetic 400 MT thanks to another batch of cancellations. Basis levels are improving because harvest is basically half done and endusers are trying to secure supplies, but that isn’t helping the futures at this point. The best the bulls can hope for today is short covering ahead of the report.
Wheat                               Estimated Fund Position

Trends

Short Term: Down           Net Long Futures and Options: -3036

Long Term: Down          Change: -4000

Overnight Trade: Chicago: Z -1 KC: Z-2 @7:30 AM

December KW made it to the bottom of the trading range yesterday and most likely that support will hold barring some kind of disaster in the corn tomorrow. Export sales were down from last week at 426,000 MT, which is still a little light. At some point we should see better sales numbers as Russian supplies dry up, but we haven’t got to that point yet. Wheat is a buy at the current level.
Soybeans                              Estimated Fund Position

Trends

Short Term: Down              Net Long Futures and Options: 147413

Long Term: Down              Change: -13000

Overnight Trade: X -9 @7:30 AM

Soybean export sales were tremendous as expected and the probably will be again next week. Meal sales were huge and bean oil sales were quite large as well. The recent prices break has been a gift to the world and the world is taking advantage of it. The charts still look terrible and yesterday’s failure of the $15.80 support suggests a move to $15.50 is possible. The fundamentals are saying to buy it now and the technicals say more pressure ahead, so we will see who wins out after tomorrow’s report.

 

Source: Schwieterman Marketing, LLC, www.upthelimit.com , 620-275-4133

 

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