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Weakening cash market may allow futures to weaken – August 1, 2012 - INTL FCStone Blog
International Assets Holding Corporation > INTL FCStone Blog > Posts > Weakening cash market may allow futures to weaken – August 1, 2012
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Weakening cash market may allow futures to weaken – August 1, 20128/1/2012 1:26 PM

CORN: LOWER
We closed lower yesterday after making new contract highs. This was due to a slightly wetter weather pattern and month end evening. Funds sold 9,000 contracts, but have purchased approximately 130,000 contracts this month. Last night offered a little something for everyone. Early on we were up 11 ½ and a few hours ago we were 16 lower. As of this writing we are down 7. The forecast for the balance of this week is offering a few rain chances across the Corn Belt. Next week should still be hot and dry, but this weather pattern looks to be changing slightly. We expect December corn to find support at $7.85 and then at $7.71. Resistance will be $8.20 and then $8.50. Although my guess is the highs are not in, I do think we will begin seeing a more two-sided trade in the next few weeks. A weakening cash market may allow the futures to weaken. Sep/Dec is trading near even money. A close below $7.85 may set us up for a break to $7.45.

Kyle Smith, Mike O'Dea, Ben Parks, Collin Hulse, Ingrid Gronlund