Buyers find U.S. corn a bargain
Rich Nelson Updated: 12/30/2013 @ 4:45pm
This week’s export sales report was delayed a day and came in huge this morning for corn. Trade had expected sales of 550K to 750K, and instead sales of 1988K were seen! That is more than double the high-end estimate that analysts had for this report.
But there are two likely reasons why corn did not rally on this news today. First, it is important to remember that these were sales made from last week when corn was down, threatening contract lows and slowly moved higher.
Once again, this report shows that buyers are fully willing to buy bargain price levels but have not shown signs that this buying stays aggressive once corn bounces. A second likely reason why there were not more buyers was simply that we are still seeing holiday volume where very few traders participated today.
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