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Grains fall back in line with outside markets

Agriculture.com Staff 10/13/2008 @ 1:27pm

For The Week: For the week of October 6, December corn futures value decreased 10%, November soybean futures value decreased 8.3% and December CBOT SRWW value decreased 12%.

For The Month: Thus far for the month of October, December corn futures value down 16%, November soybean futures value down 13% and December CBOT SRWW value down 17%.

Synthetic Closes: Following are the synthetic closes vs the futures lock limit down close; Dec corn 3950 vs 4082, November soybeans 8750 vs 9100, Dec soybean meal 2490 vs 2560, and Dec soybean oil 3675 vs 3729.

Corn Commentary: after two successful days of corn futures ability to detach from the outside influence of the stock market, crude oil, and US dollar, they succumbed and reverted back to its ways on Friday.

The perception within the grain trade has ideas of a world wide recession painting a bleak outlook for grain demand.

Friday's USDA crop report is viewed as bearish yield, and production when compared to pre release estimates. However USDA's corn report is viewed as neutral to both old and new crop domestic stocks and bullish to world corn stocks.

Look for corn futures to remain influenced by outside financial markets to start next week. However as the harvest does begin to make progress for 2008, traders most likely will monitor yield returns, new demand and weather influences.

Weekly export sales of corn were a robust 37.7 million bushels when only 30.42 million bu are needed on a weekly basis in order to maintain a positive pace to meet 2 billion bu of exports for 2008/09.

On the day it is estimated funds sold 6,000 contracts of corn.

Corn Technical Commentary: Dec corn is in a downtrend. Immediate resistance is 4310 and then 4510.

Vital Technical Indicator: The next projected major turn day is forecasted for Tuesday October 21.

For The Week: For the week of October 6, December corn futures value decreased 10%, November soybean futures value decreased 8.3% and December CBOT SRWW value decreased 12%.

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