CBOT markets all started lower today following Friday’s USDA report induced selling. The pace of selling picked up and spilled over into Europe as MATIF dropped €7 in the largest single day loss since late last July. Buyers ran away, preferring  to find better value another day.

We rarely mention MATIF corn; however, following Paris wheat losses and CBOT corn declines it was little wonder that Paris corn prices followed lower, albeit in limited volume. Cash demand from consumers in deferred positions was lively but sellers ideas remained firm on limited offers. The EU physical tightness is starting to become much more evident and with no volume offers from S America it looks as if European buyers are going to struggle to fulfil their needs.

Fundamentally, the markets should be trading higher but fund sellers have turned tail and are exiting positions which is causing “contagion” selling at present dragging prices lower. The market does feel oversold right now and we look for a “trigger” to reverse the current downward momentum.