Very little news yesterday during the session resulted in a quiet day as CZ saw a 6 cent range, and a net change of zero from the funds. But we were giving something to chew on during the break as USDA released crop conditions and lowered corn by 2 pts to 74%G/E, this doesn’t come as a complete shock to the trade as have been expecting some lower numbers in past reports. The trade is also estimating that the USDA will show a 170.6 average yield, this is 2.6 bu higher than original estimates and sets up for a 2.2bln C/O. Chatter that corn is looking good from highway but deteriorates as you get deeper into field has been around for some time but traders have seemed to brush it off, but either way you look at it reports do maintain that we are currently looking at a very large crop. Even with the fall in ratings the overnight has showed a touch of weakness, will we see that at 8:30, I wouldn’t be surprised to see a knee jerk reaction, but I am expecting downside pressure today and rest of week as traders try to jockey around before Friday’s report.
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