Corn continued the tight trading range, with the CK getting up to $3.61 ¾ before settling at $3.57. I saw a report yesterday that says we currently have 70 days of corn supply for the world, we had double that in the 80’s. What is well known and worrisome is that we are looking at ideal/great planting conditions in the US corn production areas and if we have a weak La Nina, which is very plausible at this moment, we could be looking at another very large US crop. Combine this with the Chinese authorities announcing a sell off program of reserve corn stocks will be broadcast in the next 30 days, and the USDA needing to drop US corn exports 40-50mln tons with time running out of marketing year and export commitments 9% behind USDA pace, we could be putting corn in our pools instead of water this summer. With the MAR contract getting closer to expiration, the CH/CK spread had 13K contracts traded between 3 ½ and 4 ¾ . Basis also continues to stay steady to weaker, seeing a couple cent pushes here and there from commercials but it has become a waiting game with the producer. The CK has support at $3.56 then $3.55 and resistance at $3.67 then $3.78.
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