December corn had its Eighth consecutive negative day yesterday, but just barely, settling down 1/4 cent on a lighter volume. Funds were on the side lines. RSI remains at 25 indicating the corn is getting oversold. Spreads continued to widen with Sep/Dec trading out to 14. Deliveries were 440 contracts all retenders. New crop spreads also widened with Dec/July trading 25 ¾ cents. Export sales were 214 TMT for old crop and 647 TMT for new crop. The range of guesses was -100 to +150 TMT for old and 700 TMT to 1,000 TMT for new crop. Resistance in CZ is $3.27 and then $3.36. Support is $3.15 and then $2.97. Corn basis remains under pressure in spite of little or no farmer selling. Rains in the western belt are delaying harvest. This weekend should be warm and dry with more chances early next week. At least we get a good holiday weekend out of it. Logistics and forced farmer selling should continue to pressure spreads and basis. We expect very little short covering by the funds, with aggressive selling on any rally we see by the producer and the specs. Last night was a light volume short covering.
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