Corn continues to follow wheat closing down 6 ¾ on the day, while wheat closed down 16 cents. Funds sold 11,000 contracts. Poor export demand for both grains was the main reason for the weakness. Export inspections were 296 TMT. We were looking for 400 to 600 TMT. This fueled the bearishness. After the close, harvest progress was announced at 93% complete, up 8% for the week. This compares to an 88% average. The USDA S&D is out today at 11:00 and the average trade guesses for production is 13.579 BB compared to last time of 13.555. The yield is expected to be 168.4 compared to last time of 168.0. Carryout is expected to be 1.597 BB vs. 1.561 BB. We could get a surprise here, if they lower exports 50 to 100 MB. Resistance in CZ is $3.76 and then $3.80. Support is $3.65 and then $3.60. Yesterday the corn market had its lowest close since September 4th. Commission houses and funds were the best sellers. Farmer selling remains very slow and basis is steady to better in most markets. Day three of the Goldman Roll is today and yesterday saw a pretty heavy volume at 9 to 9 ¼ in CZ/CH. Look for a quiet day ahead of the crop report and then buckle up.
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