Morning Call by Bryce Knorr

Overnight Trends
Corn:  Down 1 to 3
Soybeans: Up 6 to 8
Wheat: Steady to down 2
Greece’s vote on a new government may or may not resolve its shaky political situation on Sunday. But traders, investors and central bankers are preparing for the worst. Traders are squaring positions while bankers prepare contingency plans to flood the global financial system with cash to avoid turmoil. Both actions appear to be causing a very quiet, if nervous, tone today.

Corn traded both sides of unchanged overnight, with a slight bias to the downside as the pit open in Chicago nears. July corn is fighting to hold $6, with its 50-day moving average just above the market at $6.035.

South Korea bought 2.75 million bushels of new crop corn today, though no origin was specified. Export Sales for the latest week posted a marketing year low on Thursday, and total old and new crop new bookings were just 6.7 million bushels. That appeared to confirm USDA’s decision in Tuesday’s supply and demand report to lower its forecast for exports of 2011 crop corn. Nonetheless, CIF basis at the Gulf firmed another two cents, reaching a five-week high, as shippers wanting corn must compete with other users for tight supplies, as ethanol processors continue to push bids. For more, see my Weekly Basis Review. For trends in your area, see the Cash & Basis Charts pages.

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