The corn market had a Happy New Year if you were a bear. Corn settled down 7 ¼ cents making a new contract low at $3.50 ½ based on a train wreck in equities that started Sunday night in China. The Dow closed down 276 points after being down 468 earlier in the day. This morning Dow futures are higher. Funds sold 14,000 contracts yesterday. The Commitment of Traders we out yesterday afternoon showing the Managed money 52,000 contracts shorter than thought. They are now short 160,000 contracts. Resistance in CH is $3.60 and then $3.64. Support is $3.50 and then $3.47. We did see some commercial buying yesterday, but weekly export inspections added insult to injury. Inspections were 325 TMT, well below the 475 to 600 TMT expected. We are now 16% behind USDA’s projections and nearly 25% behind last year’s pace. World prices continue to ratchet lower. With all the world economic uncertainty, the dollar rallied a little, making U.S. products less competitive. Look for a little “turn around Tuesday” action today, but the trend is not up.
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