With nothing to keep pushing the corn bull up we continue to slip down the hill as we were not able to tackle the $3.73 resistance mark last week and closed down Friday to $3.65. The funds helped this down pressure with a sell off of 8K, and the equities markets continue to take hits with the DJ down 197 on Friday and 200 this morning. There shouldn’t be any action out of China this week with the new year holiday, and with SA weather issues all but non-existent, outside market news should be quite. Here on the home front the February USDA crop production report comes out tomorrow, the trade is looking for a number around 1.802 for US CO and a 208.43 for world CO, but no surprises are expected. Producers flow has dried up for the most part as most took advantage of the Jan rally and are content sitting on the sidelines looking for a 2016 crop weather event to price some more. The CH/CK spread has gained some traction and has been trading at 4 ½ to 4 ¾ and country basis remains weaker, good indications that commercials seem happy with inventories/ownership. The CH has support at $3.64 then $3.48, and resistance at $3.73 then $3.74.
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