Corn continued its week long rally yesterday with CZ chopping up higher to $4.11 before settling at $4.0975. Saw good new crop selling from the producer the past 2 days with corn planting coming to an end you are seeing more desire to price some of the crop. The funds where in the party and bought an estimated 12K contracts. China auctioned off 889K tonnes yesterday, 97% of this was from the “2012” crop. The overnight was uneventful, currently trading ¼ down as we are looking to see if we will have enough momentum to carry us over yesterday’s highs before the holiday weekend. Some reports are circulating that southern Brazil is in a flood watch next week which might add some gas to the fire. But planting for corn comes to an end talk will turn to total acres planted and US weather to keep pushing this complex higher. Given the current numbers from the USDA, and current forecasts though, corn is overpriced at 4.00+. With CU/CZ spread trading at or close to equal value, like yesterday you will continue to see some bull spreading. The CN has support at $3.91 with resistance at $4.0925.
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