What a difference a day can make, if you sprinkle in a bearish WASDE and an unexpected president election and we got ourselves a party. The market was materially unchanged throughout the morning till the WASDE report was released and the USDA placed yield at 175.3, production 15.226bln and a C/O of 2.403bln. This was 2 bu higher than the Oct report and right on par with FC stone estimates and a 85mln increase in 16/17 C/O. The markets reacted in turn with the funds selling off almost all of the gains made on Tuesday, an estimated 22K contracts, as CZ just settled off the low at $3.4075. Export sales were a very robust 1.233Mln tons, right in range with the trades estimates, and we continue to crush last years numbers and the pace set by USDA. But the uptick strength we have seen on the overnight has come from a very strong, and surprising rally in beans. Looking ahead to today, if the beans continue to hold or extend the rally I expect corn to follow, but after yesterday’s big action I am looking for a mixed trade, if we do end up closing under $3.37 look to see another leg down on the market. CZ has support at $3.37 then $3.32 with resistance at $3.46 then $3.52.
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