Monday, November 10, 2008

Modest Losses In Trade Before Report Recession - Nov 10, 2008

US corn futures posted slight losses, falling under the influence of the outside markets and ahead of a crop report Monday. Crude oil traded on both sides of unchanged during the day and a late dip into negative territory likely tugged on corn prices. Corn opened higher on the coattails of a rally on Wall Street and higher crude oil, but traders quickly pared gains as a choppy trade developed. Also, some traders took profits on the opening gains after two days of losses.

The grain market, as with most commodities, continues to be pressured by fears of weakening demand as world economies slip into recession. Recent export sales have confirmed this weak demand trend.Dec corn lost 2 1/2 cents to settle at $3.75 1/2 a bushel, and Mar gave up 2 cents to settle at $3.93 1/2.

Weather is a concern in the western and central corn belt, with much corn left to harvest and wet, cold conditions setting in. The favorable harvest weather the region has enjoyed until this week has abruptly come to an end, and producers are expected to struggle to get the remaining crops out of the fields.

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