Corn saw a 3rd straight “up” day and it feels stronger, but we still are only up 5 on the week as whole as fund buying and the bean rally has kept the pressure upward, with CZ closing yesterday at $3.5750 with the funds buying an estimated 10K contracts. Now while this strength is encouraging on the outside, with the amount of short-covering this week and only a 5 cent range is concerning, and $3.60 still looks like a solid ceiling that will take some sort of fundamental event to break. The CZ/CH spread has tightened a bit over the week, trading 8.25 on the overnight, but is a good indication that cash corn is not moving and market’s attempt on opening the faucet. More talk of on-farm and off-farm storage becoming even more an issue is hitting the market, with a combined bean crop and potentially larger than expected corn, space is becoming a serious problem. Looking ahead to today, with the end of the week we could see a bit of a sell off, especially with a solid weekend of harvest, looking for a mixed bag with the potential to test $3.60 but see it being overall weaker. CZ support at $3.5325 then $3.47 with resistance at $3.60 then $3.64.
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