CBOT Corn pre open, Nov 11,2009

Corn

• Overnight corn (Dec9) was up 2.5 cent, USD index lower ,Eu+Asia equity higher and crude oil still high...Outside market factor was support corn prices.
• Corn futures trading very active. Volume was around 370,000 on Tuesday and open interest up 12,000 contract, new money still come to corn futures.
• USDA estimated corn production at 12.921 billion bushels was down 97 million bushels from Oct esimate and 74 million down from trade estimate average at 12.995 billion. But corn supply side was not stable due to lateness in harvest and maturity level in some of the major corn states.
• The USDA's report yesterday also showed that world ending stocks in corn stand at only 16.5% of projected usage at the end of the year. This is the third lowest in the past 34 years.
• Technical analysis for corn (Dec9); Daily corn chart show bullish trend in both minor and major trend. Stochastic, MACD and RSI was uptrend. Moving average is bullish. With outside market supportive. USD index was bearish , dollar still used for carry trade due to interest rate still low in US that force investor looking for high return asset. I think money will flow in to commodity and corn price should continue up today, next resistance is 400 cent.