Corn Report, 02/04/2016

Thursday, February 4, 2016

The corn market continues to tease, as we are able to maintain trade at the high end of the range but still not gain much traction upwards after crossing the $3.73 point. The funds where sellers of an estimated 5K contracts, helping keep the tight range. It feels like the basis out in the country continues to slowly work lower, with the expectation of some weather premiums in trade areas affected by the blizzard. With producer movement lower but continuing at a lower rate, it seems that the overall producer sentiment is hold on and wait for a weather or geopolitical rally. Export numbers for corn this morning are positive, beating the trade’s estimates with a 1,129 TT export number. The dollar’s 1600 pt crash yesterday helped the crude market rally and lended support to corn, as equities markets continue their downside trend, the DJ is currently down -124 pts. The CH has support at $3.65 then $3.48, with resistance at $3.73 and $3.77 with my overall opinion that if we cross that $3.75 mark we will run past the $3.77.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

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