Corn values traded weaker overnight as technicals are beginning to rollover and the USD rebounds from last week’s weakness. Funds covered nearly 21k contracts last week boosting values to the highest levels in the last month. Producers were big sellers of corn and milo on the rally and that trend will likely continue if we see another 5-10 cents added. Despite the selling pressure, the H/K spread remains tight. Today’s export inspection estimates range 300-500k tonnes. US Gulf corn values are now near parity with Argentine values and thus could lead to additional US sales, but we will see what happens when Macri takes office on December 10th. Market action is also a function of the wheat/corn spread and money flow which is adding pressure on the market to begin the week. Values likely will see some additional strength ahead of Wednesday’s USDA report.
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