The much larger corn export number of 2.16MMT gave the market a solid run up to $3.9075 on the CK before settling at $3.87. Combine this with the USD making new contract lows yesterday, and Brazil still dry with cool temps we are finally giving the complex a little fundamental gas this week. The overnight has continued this strength and the CK is currently up 5, this nearby rally has been and should be sold into by the producer, as the funds are also seeing this as the time to cover some short position, buying an estimated 15K yesterday. CZ hasn’t received much on this rally as US planting and weather remains optimal and that 93MA number is still on the board, and the extent of damage to Brazil’s crop is still strictly speculation. But we are approaching that psychological point of $4 NC flat price, one that should and again will probably sold into by the producer again, as last call on this rally seems to be just around the corner. The CN has support at $3.72 then $3.5125 with resistance at $3.9525 then $4.0725.
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