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Corn was victim of wholesale liquidation – April 19, 2012 - INTL FCStone Blog
International Assets Holding Corporation > INTL FCStone Blog > Posts > Corn was victim of wholesale liquidation – April 19, 2012
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Corn was victim of wholesale liquidation – April 19, 20124/19/2012 8:23 AM

CORN: HIGHER
Old crop corn was under pressure all day yesterday. Funds sold 20K contracts. Corn was a victim of wholesale liquidation. We saw commission houses, commercials, and funds sell corn, liquidating July/December spread, corn/wheat spreads, and corn/bean spreads. In the last 10 days the July/December corn spread has fallen from $1.10 inverse to $0.65 inverse. The market short covered last night with the trade thinking the $6.00 area in May and $5.90 in July should be support for now. As expected, China was rumored to buy 400 to 500 TMT of June–July corn. Export sales were out this morning at a disappointing 298 TMT. The trade was looking for 500 to 850 TMT. Support for July is $5.92 and then $5.70. Resistance is at $6.18 and then $6.35. The export sales numbers will take some of the shine off of the overnight short covering rally. The RSI is 31, indicating we are getting oversold. Look for higher most of the day in July.

Kyle Smith, Mike O'Dea, Ben Parks, Collin Hulse, Ingrid Gronlund