Corn was able to hold on and post its 5th consecutive day up with the CN touching $4.0050 before settling the day at $3.9950. The situation in Brazil continues to be hotly debated by the trade, as local prices have risen dramatically as harvest of the second crop doesn’t happen till June as stocks are extremely tight. This has diverted Argentina corn from entering the US gulf and pushed it east and we saw corn rail basis jump out of the eastern Corn Belt to try and pull some corn out of that region. Export sales for last week came out at 1.473mmt which was well above trade estimates and another good indicator of tight corn supplies in SA. This puts more pressure for the US to have a large crop and by all indications with acres projected and current forecasts that’s what we will be getting. All this being said, corn at the break is down 4 ½, the entire commodity complex is down, current production bear estimates need to be respected but there are bull stories developing. CN has support at $3.8525 then $3.5875 with resistance at $4.0050 then $4.0725.
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