The corn market rallied on a good export sales number that prompted fund short covering. Export Sales were out yesterday morning at a whopping 1.095 MMT. We were expecting 450 to 650 TMT. Farmer selling was light; however basis is on the defensive. There are continued rumors of China selling reserve stocks and cutting cash prices.
Resistance in CH is $3.82 and then $3.85. Support is $3.72 and then $3.68. Weather issues remain benign. This should keep us in a $3.60 to $3.80 trading range, more or less. Spec funds are short 85,000 contracts and many times they try to be long going into the growing season, so we could see a big short covering rally sometime this winter. Look for a two sided trade today.
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