Another tight range bound trade for corn yesterday, as CZ saw some action to $3.3925 before scaling back a bit to close the day at $3.3725. The funds where estimated to be a net even on the day, with wetter forecasts being called for the most of the corn belt, along with cooler temps hitting earlier next week. Limited news and the trades distrust of a 175 yield number from USDA has kept the lid on much market moves, the funds sit at solid short position and it seems everyone who wants to be short is. But with continued favorable weather and temps, the downside feel is still very strong. With producers looking $3 NC, corn basis has been steady, selling has not been prevalent, but the time is coming where do they sell now or wait to see what the last month will bring. With the overall opinion that yield is now 170+ at least there is not much upside on either basis or flat price. The USD dropped 830 pts yesterday, with not much support till we reach June’s lows of 93.00 we could see contraction continue. CZ support at $3.32 then $3.28, with resistance at $3.42.
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