December corn had a wild day yesterday trading 3 higher and 9 lower in the range and settled 8 ½ lower at the close. Funds sold 14,000 (some think 20,000) contracts. This was in spite of a USDA Supply / Demand report that decreased production, increased demand, and decreased carryout. Fund selling and spec long liquidation were the main reason for the weakness. World carryout was also down 2.65 MMT and that should have been supportive, but to no avail. Resistance in CZ is $3.47 and then $3.55. Support is $3.35 and then $3.28. The farmer is still in shock and will be reluctant to make sales until prices come back or he runs out of cash. Most farmers are waiting for a 10 to 20 cents better price to start making sales. Harvest progress should be slow this week, but next week looks pretty dry and many are finishing up beans and will get started again on corn. Basis is steady to slightly better in a few markets in the east, but we expect it will be after the first of the year before we see much basis support. CZ/CH is trading 9 ¾ to 10. Try to be patient and wait and see how the spread is trading after we have two thirds of the harvest completed. It should widen out.
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