Corn fought back yesterday and we had 100% retracement on the CN from Tuesday’s loss’s as the fund bought back an estimated 13K contracts on reports that we are going to see a dry July in the southern Midwest from the NOAA. You combine this with a published report from a satellite company that is claiming with their models the Brazilian crop is only 75mmt, this is 6mmt less than the USDA, and you throw enough gas on the fire for a good size flare up. With the USD continued range bound trade, the trade turns to how long will US corn be competitive on the world stage, especially with a lower Brazilian crop. Will the increased export demand cover enough for the increased US acres? All questions we will have to see play out. Country basis remains steady to weaker, with a few walking it back with the flat price rally, but we are already in some historic lows that its tough to see it going much lower. The CN has support at $4.00 then resistance at $4.15.
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