Corn Report, 01/05/2017

Thursday, January 5, 2017

Corn was able to ride the upward pressure of a rallying bean and wheat markets to too run up against the dreaded $3.60 resistance level. CH ended up 4 for the day, closing at $3.5975, with the funds buying an estimated 8K contracts. News of the continued spotty dryness in Northern Brazil and Southern Argentina kept fuel on the fire while a weakening dollar yesterday kept the support up. Even with the supportive prices cash movement once again was limited as these values have been shown and sold into, it feels like if we were to break into $3.65-$3.70 a lot of farmer owned corn would shake loose. With fund movement next week, a weakening dollar and the list of USDA reports out next week expecting to see a relatively strong/mixed market here the rest of the week and next. Some technical’s are calling for a rally into the mid-60’s with the impressive close we had yesterday, $3.60 has been a solid resistance since the end of Nov, but the factors are there to pressure through it. Looking ahead to today, very little overnight trade, looking to see a mixed trade over $3.60, with most of the day spent in the high $3.50’s. CH has support at $3.5525 then $3.51 with resistance at $3.61 then $3.66.

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