December corn firmed up early yesterday and closed 3 ¾ higher on the day on light volume and a narrow 5 cent range. Funds bought 5,000 contracts on the day. Technically corn closed right up against the down trend line. We are trading mixed to lower this morning and If we close much higher today, we may spur some commission house short covering ahead of the S&D Wednesday. Progress reports will be out this afternoon and inspections will be out this morning. Both were delayed because Government offices were closed for Columbus Day. We are looking for 1.1 to 1.4 MMT on inspections and 45% to 50% harvested. Resistance in CZ is $3.45 and then $3.49. Support is $3.39 and then $3.35. Farmer selling is still slow. Most farmers are waiting for a 20 to 30 cents better price to start making sales. This week’s weather forecast is slightly wetter, but next week looks pretty dry. The USDA Supply / Demand report will be out Wednesday. The average trade production estimate is 15.060 BB compared to 15.093 last month. Carryout is expected to be 2.359 BB vs. 2.384. The smart guys are positioning for a slightly friendly report. Look for a choppy – two sided trade today and the next few weeks.
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