Indiana Grain Company, LLC

Posted: 12/15/11

By: tomgrisafi

Corn dipped slightly early Thursday after falling to a nine-month low in the previous session, while the benchmark wheat similarly hovered at contract lows as concerns over Europe's worsening debt crisis continued to hamper the global markets.

"Grains and oilseeds are not in a Christmas mood, it's all because of the macro economic situation," Ker Chung Yang at Phillip Futures in Singapore tells Reuters. "Buyers are seeing some bargain hunting in soybeans near the psychological support level of $11 a bushel."

The fundamentals aren't assisting corn and wheat markets either with U.S. government last week forecasting record global supplies which are hurting U.S. exports.

The USDA pegged 2011/12 U.S. wheat ending stocks at 878 million bushels, above trade estimates for 830 million bushels and up from the November forecast of 828 million bushels.

It raised its forecast 2011/12 corn stocks to 848 million bushels, above trade estimates for 831 million bushels and above the November forecast for 843 million bushels.

According to a report from Reuters, "commodity funds sold a net 11,000 Chicago Board of Trade corn futures contracts on Wednesday, trade sources said. They sold 8,000 soybean contracts and sold 3,000 wheat."

Source: Reuters

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