Corn hit 2 month lows yesterday as export sales were below expectations and the overall bearish sentiment of the market wore down traders as we closed down 7 cents at $3.3175 with the funds selling an estimated 12K contracts. Some have pointed to the fact that we are 76% above last year on export sales, but what concerns traders is the value of US corn on the market that demand is not corresponding. This might change a bit as the USD consolidating ahead of European elections this weekend, but with SA coming online in March world origin will swing south and US corn will be priced out of market so any weakness in nearby demand has traders nervous. Weather in SA remains unchanged, Brazil continues to see rains in central and northwestern, some dryness in E. Mato Grosso and Rio Grande Sul has captured some attention. Argentina dryness is stressing the crop, but rains in central/south Buenos Aires should provide some relief there. Looking ahead to today, the overnight has provided some strength, as it looks like a dead cat bounce today after 5 lower trading sessions, could see some short covering and CH approach $3.46-$3.48, but the overall bearish trend continues. CH has support at $3.3650 then $3.30 then resistance at $3.4675 then $3.48.
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