Corn had ended up week with a pop higher after we retraced the prior weeks entire gains and more as we settled the week at $3.7750 on the CN and $3.8475 on the CZ. The bean market continues to have the most clout in the movement of the corn market as planting progress continues at a solid pace and true numbers of Brazilian loss will not be known for some time and the feeling is the loss isn’t as great as numbers where being reported, so corn has become the follower. The first USDA S/D report for 16/17 comes out tomorrow, the trade is looking for a 20MLN cut in the 15/16 spreadsheet and a 2.3BLN C/O in the 16/17. With the pace of planting and feed/ethanol use nearly capped we would have to see a large increase in the export numbers to bring this 2.3 number down and given the current landscape this will be tough to see. The CN/CZ spread is tightening up a bit and at the break is was trading at 6 1/2. The CN has support at $3.7125 then $3.5125 with resistance at $3.95 then $4.0725.
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