"It was fun while it lasted" was the mantra from Corn bulls this afternoon, as a larger-than-expected quarterly grain stocks report coupled with end-of-quarter profit-taking selling sent Corn prices sharply lower. In today's report, the USDA estimated 4th quarter Corn stocks at 1.304 billion bushels - well above the average pre-report estimate of 1.147 billion bushels. Sell-stops were seen triggered below $3.80 in the December contract, with fresh momentum selling seen below $3.75. Harvest weather is expected in the Midwest this weekend, which should encourage commercial hedge selling, as producers move Corn to the grain elevators. The $3.68 ¼ level is seen as the next support point for December Corn, with resistance found at $380 ½. December Corn closed at $3.72 ¾, down 14 cents.
Another Day, Another Dollar Decline
December Dollar index futures continued their decline today, as U.S. economic data did little to alter expectations for further interest rate cuts. This morning's release of the core PCE price index was well within the Fed's comfort zone, with a rise of 1.8% in August. The Reuters/University of Michigan consumer sentiment index remained steady at 83.4 for September. December Euro futures rose to new all-time highs, closing well above the 1.4200 mark. Support for the December Dollar index is now seen at 77.50, with resistance found at 78.05. December Dollar Index futures closed at 77.625, down 0.620.
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