Corn Report, 03/09/2017

Thursday, March 9, 2017

Outside market pressure, combined with another slow day of news in grains continued the selloff in corn as traders started positioning themselves ahead of the today’s WASDE report. The managed money crowd sold off an estimated 8K contracts, if we break through the $3.70 support VOL will drop and we could see a quick sell off to $3.65. Crude oil crashed hard yesterday off $2.86 or 5.38% as fund money pulled the plug and we broke the $50 support level, the weakness has flowed into today which will keep a heavy hand on the grains. The WASDE is out at 11am and as mentioned earlier this week looking for a slight decrease in US C/O and a 1MMT increase in Brazil production. Once the trade digests the report full attention will be again turned to S. America weather and Stocks/Planting reports on the 31st. Looking ahead to today, expecting a tight session ahead of the report with downside pressure. But when we expect neutral WASDE reports we usually end up getting fireworks so better to be prepared than on the wrong side of the fence. CK has support at $3.70 then $3.66 with resistance at $3.75 then $3.77.

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