WEEKLY CORN REVIEW: Is This 'The Winter of Our Discontent?'
Commodity prices take on new urgency.
Bryce Knorr
Published: Dec 7, 2008
I was in Minneapolis last week providing an industry update to people who work in glass towers and don't wear coveralls or long underwear to work this time of year. The title of my presentation, "The winter of our discontent," seems more apt than ever after another disappointing week in the market.
The collapse of commodity prices last week took on a new urgency, especially for corn. Chart support at $3.25, which looked firm, gave way easily on Friday's break, with March futures trading below, but closing above, the 2007 nearby futures low of $3.085. A chance at the week chart shows very little air below the market now, with next support all the way down to $2.6875, the point where the market broke out to start the bull market in 2006.
This collapse is not really about fundamentals, though the fundamentals were weak for corn last week. Exports continue to be miserable; buyers either don't have money, and every our best customers are searching out cheaper alternatives made more accessible by ocean freight rates that have broken even more than corn.
To read Bryce Knorr's complete weekly corn review, click HERE.
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