Corn traded lower yesterday with CZ touching $3.68 before settling the day at $3.55.50. As the market reacted to a wet 5 day forecast for the dry areas of the central Corn Belt, along with some pre-trading ahead of today’s report. No big changes are expected from the July WASDE report as corn ratings have been excellent there should no yield changes, and 15/16 carryout should increase a bit with a lowered feeding program and export inspections are down a touch. The corn ratings yesterday actually increased 1% to 76% as 8 states reported increase, 8 states reported decrease and 2 where left unchanged. I have heard reports that in W.Kansas the dry land corn is looking like “Iowa” corn and is better than irrigated. Now there is still plenty of time for dry things up as the nation’s top soil is vulnerable is many spots, but we have seen enough rain that Dr. Cordonnier has raised his national corn yield by to 166bu/acre. But like always there could be some volatility right after the report, but expect the weather market to remain the driving force of any extended rally or push this thing down. CZ has support at $3.46 then resistance at $3.68.
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