Despite a good export sales number and a strong wheat market, corn succumbed to the pressure of beans and a strong dollar. Corn closed 4 ½ lower on the day with a 10 cent trading range. Funds sold 6,000 contracts. We announced more optional origin sales to South Korea yesterday. Another 332 TMT was reported. China is also offering corn to South Korea at cheaper prices, but we are beating them out on quality and financing. The USDA supply/demand report is out at 11:00 today. We are expecting very little change on the supply side. Feed should be reduced, but exports and ethanol could be increased leaving very little change in carryout. Look for 10 to 25 MB either way. Resistance in CH is $3.60 and then $3.64. Support is $3.50 and then $3.47. Farmer selling remains light in areas east of the western corn belt. We will need to rally CH to $3.75 to 3.85 to bring out a lot of eastern corn belt selling. We are still looking for some resistance in the upper limit of our $3.70 to $3.30 trading range. The outside markets are mixed this morning with Dollar Index higher and crude higher. Stay buckled up for the crop report.
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