Corn values have consolidated near the recent highs of $3.72 ½ and continue to hold the 50-day MA of $3.67 thanks in part to the strength in wheat. However, technicals are starting to roll over and without additional supportive news; we could see values set back to the low $3.60s in the meantime. Weekly corn inspections totaled 600k tonnes hitting the top end of estimates and the largest inspections number over the past month. Cumulative loadings are now 22% behind last year. The Chinese stock market is getting pummeled amidst another round of poor economic news likely leading to reduced export demand. The H/K spread traded back out to -5 this morning as farmer selling has picked up on the rally and basis has backed off in the ECB. Funds are now short 160k contracts.
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