September futures closed 5 ½ higher Wednesday with funds buying a net 11,000 contracts. The market exploded higher Tuesday night in spite of cooler – wetter extended forecast. Farmer selling was very light on this last leg up as their attitudes are becoming more bullish as they see less ideal conditions and some areas seeing drought conditions. After the close, the extended forecasts continued a slightly wetter trend, but the heat came back to some areas of the corn belt. Resistance in CU is $3.89 and then $3.94. Support is $3.80 and then $3.74. Basis is steady to firmer in the western corn belt. Farmer selling is very slow for both old crop and new crop until the market reaches new highs or we see a substantial change in the weather pattern. Despite a cheap dollar, we still have not seen a big increase in export interest. Export sales came out at 466.5 TMT for old crop and 212.1 TMT for new crop. We were expecting 150 to 350 for old and 200 to 400 for new. Call this neutral for corn. Look for selling to increase in the 4.02 to 4.05 area. Stay hedged up.
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