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July 23 forecast of market trends corn – corn prices – Food Industry

Put due to weather conditions, the market under technical pressure, CBOT corn market closed down on July 22; industry believes that the State Reserve auction in poor condition, with no one concerned about the futures market. Late in the reservoir is expected to auction for the sale of corn still will not be much difference, futures markets will remain depressed state.

7 22, September corn contract closed 308 cents, down 3.5 cents; December corn opened 320.5 cents, the high point of 320.75 cents a low of 314.75 cents to close at 319.25 cents, down 2.75 U.S. points.

Mild weather is still leading the market trend, the current U.S. corn belt weather was cool and abundant rainfall, the new carry-over stocks are projected crop yields and strong.

Addition to weather factors, the technology sell-off also constitute suppression of corn disk. Increase the duration of short covering short, the venue could not find any new good news.

Analysts add that the ongoing weakness in wheat also weighed on corn prices. Government in 2009 to reject an increase in the use of fuel ethanol is also seen as another negative factor in market psychology.

Set early September corn contract broke in December 2008 under the low of 306 cents to 304 cents for the 06 lowest level since the contract in recent months. However, a floor trader also pointed out that a new low has not been re-rewritten.

Traders expect the U.S. Department of Agriculture Exports of tomorrow Sell Corn data reported strong. Market is important to pay attention to the psychological barrier of 300 cents this location. In particular, traders worry that volume and open interest more in December corn contract will not fall below that point, but if the contract broken open 300 cents in September will also be regarded as negative.

The same time, traders are more concerned about the issue of early frost, because the growth may be behind schedule on destroying the crops. Meteorologists said the evidence that cool weather is expected to continue to fall, or will increase the chance of frost risk. At present, the low temperature is slow corn crop, which will lead to the arrival of the first frost before the not fully mature.

In financial futures analyst Angie Chen believes that even the shocks of corn will continue to look for short-term direction. The first auction of the reservoir is less effective corn, 2 million tons traded only 750,000 tons. There are four reasons: 1. Most Feed Enterprises have a certain stock, in a wait state; 2. Heilongjiang and Jilin library point to some remote location is not conducive to transport, reduce business enthusiasm; 3. Food quality and regional differences; 4. The auction is only in the producing areas, the demand large volume of sales areas such as Shandong and Guangdong are not included in the scope of auction. Corn futures market speculators, enthusiasm is not high, closing quiet, watching the market who hold more corn.

Liang Jiang Yun Nan futures analysts believe that even the corn trend is difficult to change later in the doldrums. Reserve auction price because the country has been finalized, many traders used to stay on the sidelines of the starving have also begun to enter the market, resulting in market supply increased, this country has no reserve auction is expected in the hot, late State Reserve is expected to auction for the sale of maize is still not much changed, futures markets will remain depressed state.

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