Corn rallied yesterday 5 cents on the EPA Renewable Fuels Mandate announcement. That prompted funds to buy 17,000 contracts. The EPA announced the 2016 Renewable Fuels Requirement at 18.11 billion gal, compared to this year at 16.93 billion gal. This is an estimated 5.18 billion bushels of corn for 2016 and 5.017 BB this year. The Commitment of
Traders report was also out and was 27,000 contracts shorter than we estimated, making funds short 97,000 contracts. This is supportive because it could give the funds more buying power. Export inspections were poor at 299 TMT, 26% less than last year. Resistance in CH is $3.78 and then $3.84. Support is $3.66 and then $3.64. Yesterday’s rally brought out a little farmer selling and we are seeing some more this morning. We continue with our thoughts of being stuck in a $3.60 to $3.80 trading range for a while. Basis has a general weaker feel to it. CH/CK and CH/CN were slightly wider yesterday.
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