Corn was much quieter yesterday trading 2 or 3 cents either side of unchanged and closing 1 ¼ higher for the day. The weekly ethanol production numbers were out yesterday at 1,003,000 barrels per day, up 7,000 barrels, this is the second largest on record and stocks were up 246,000 barrels. Argentina is offering corn 20 cents cheaper than U.S. corn equivalent into China. Export sales were out at 669 TMT, but the trade was looking for 400 to 650 TMT, so this should be considered supportive this morning. Yesterday saw very little farmer selling, but commercials and funds keep buying. Basis is steady to weaker in the west and firmer in the central and eastern Corn Belt. This firmer basis near the river is tightening spreads slightly, with March/May trading at 4 ¾ to 5. The Dow closed down 364 with a late day selloff. This morning Dow futures are up 85. Look for quiet markets the next few days and then back to same old sideways to lower grind. Funds bought 5,000 contracts yesterday. Resistance in CH is $3.64 and then $3.68. Support is $3.49 and then $3.42
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