Corn Report, 02/04/2016

Thursday, February 04, 2016

The corn market continues to tease, as we are able to maintain trade at the high end of the range but still not gain much traction upwards after crossing the $3.73 point. The funds where sellers of an estimated 5K contracts, helping keep the tight range. It feels like the basis out in the country continues to slowly work lower, with the expectation of some weather premiums in trade areas affected by the blizzard. With producer movement lower but continuing at a lower rate, it seems that the overall producer sentiment is hold on and wait for a weather or geopolitical rally. Export numbers for corn this morning are positive, beating the trade’s estimates with a 1,129 TT export number. The dollar’s 1600 pt crash yesterday helped the crude market rally and lended support to corn, as equities markets continue their downside trend, the DJ is currently down -124 pts. The CH has support at $3.65 then $3.48, with resistance at $3.73 and $3.77 with my overall opinion that if we cross that $3.75 mark we will run past the $3.77.

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