After a up and down week bouncing between $3.50 and $3.60 like a pong board we had a rather subdued end of the week with Friday having a 4 cent range and CZ closed the week at $3.5250 with the fund buying any estimated 5K contracts. The CFTC report showed that the funds position as of Tuesday was actually 50K contracts short, which means since Oct 11th the funds have short covered 70K contracts. Why I am focusing on this is because the recent rally we have seen is almost solely based of fund movement, there hasn’t been a fundamental change, some believe the 16/17 carryout can still grow over 2.3 bln bu. Basis remains steady to weaker as harvest should have made good progress through the end of last week, rains are projected to hit the midwest by mid-week, should see nation harvest close to 60-65% complete. Beans have made a strong overnight bounce, if this continues it will drag corn along with it, but again looking for range bound trade, with heavier trading on the lower side. CZ has support at $3.49 then $3.41 with resistance at $3.57 then $3.60.
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