The last part of Thursday’s trading session brought with it a turnaround back higher

12-10-09

GLOBAL COMMODITY ANALYTICS & CONSULTING LLC UPDATE:

THIS IS MIKE ZUZOLO WITH YOUR THURSDAY CLOSING MARKET WRAP-UP:

• The last part of Thursday’s trading session brought with it a turnaround back higher in the corn with the beans and wheat also finding some short-covering. By the close, the corn had regained its 50-day Moving Avg. as support: with very little help from the outside markets or the beans and wheat, the corn was able to pretty much power itself forward after a neutral USDA report—likely on the heels of the western corn belt blizzard finding some pent-up buying. Weekly export sales were also about 25% above the 4-week average and this likely helped the corn psychology as well.

• Beans struggled all day Thursday, as did the wheat; with the Crude Oil and Gold not looking very robust at all until after the grains closed, and the Dollar mostly stronger, the fact that wheat struggled came as little surprise…especially given USDA increased ending stocks to 900 Mln. Bu. On Thursday morning’s report.

• But the beans and meal faced difficulties all session long, even in light of a good USDA report and exceptional weekly export sales. Maybe the beans saw a little “buy the rumor/sell the fact” since the report was released. If this is the case, then the downside on Friday should be limited in my view.

• Prices before the Settlement on Thursday’s Grain Trade: Corn Up 9-10; Wheat Down 1-2; and Beans Down 1-3.

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