That is the recent talk among grain traders recently, as reports of higher than expected yields, and the potential for slower demand from Ethanol producers, have traders looking for a large Corn surplus. Analysts are continuing to raise their estimates of this years Corn crop with private forecasters looking for a total somewhere between 13.3 and 13.5 billion bushels. Weather forecasts are calling for near ideal conditions for harvesting this weekend, which may spur additional hedge selling as producers move Corn to local elevators. U.S. export sales look solid with U.S. Corn export sales expected to come in between 1 and 1.4 million metric tons last week. The USDA will report the totals in this morning’s weekly export sales report. Large speculators continue to hold a large net-long position in Corn, with the most recent Commitment of Traders report showing large non-commercial traders net-long 193,687 contracts as of September 25th. Should next week’s USDA crop production report hold a bearish surprise for traders, this large long position may be the catalyst for a sharp sell-off should the funds start to liquidate their Corn holdings.

Looking at the daily chart for December Corn, we notice prices are below the major moving averages, despite a moderate rally in overnight trading. The 14-day RSI remains weak, with a current reading of 38.35. December Corn is holding just above an area that appears to offer decent support between the $3.30 and $3.40 area. Should support hold, as test of the 20-day moving average near the $3.60 area is a definite possibility. At the end of the overnight session, December Corn is trading at $3.48 ¾, up 4 ¼ cents.

Futures trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future trading results. Trading commentary and analysis is based on information taken from trade and statistical services, news services, and other sources which XPRESSTRADE believes are reliable. We do not warrant that such information is accurate or complete, and it should not be relied upon as such. XPRESSTRADE's policy is to publish market research that is objective, clear, fair, and not misleading. Trading commentary and analysis reflects our good faith judgment at a specific time and is subject to change without notice. There is no assurance that the advice we give will result in profitable trades. All trading decisions will be made on a strictly unsolicited basis by the account holder.