CH felt like it had a big day yesterday trading both sides and closing lower. We traded mostly lower overnight. Funds were mostly on the sidelines yesterday. Some farmer movement was noted and basis is weaker in most markets including the eastern corn belt. Export sales were good yesterday at 1.144 MMT. The trade was looking for 0.800 to 1.100 and the bulls were disappointed that this did not support the market better. Resistance in CH is $3.70 and then $3.75. Support is $3.60 and then $3.56. Generally speaking, farmers are still doing a good job holding inventories, especially in the east where basis is higher than normal in many markets. Demand seems better than expected in the export and ethanol sector. The corn spreads continue to widen out a little and CH/CK is not trading 7 ½. We could see wider levels first notice day, but right now look for a 6 to 7 ½ trading range. Look for a good chance to trade both sides.
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