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Yesterday’s Close: July corn futures finished yesterday’s session up 1 ¾ cents, trading in a range of 2 ¾ cents. Funds were estimated buyers of 7,500 contracts.
Fundamentals: Export inspections yesterday morning came in at 1,719,025 metric tons. The expected range was for 1,200,000-1,700,000 metric tons; last weeks inspections number came in at 1,576,000 metric tons. Yesterday afternoons crop progress report showed that corn is 5% planted, this was on the low end of the expected range and compares to the 5-year average pace of 18%. Weather will continue to be an important factor going forward. If the planting delays continue we would expect to hear more chatter with regards to acres moving from corn to beans.
Technicals: Not a lot has changed on the technical front over the last 24 hours. First support this week comes in from 379 ½-383 ½. This pocket represents the 100 and 200 day moving average, previous support at the end of March, and the 50% retracement (middle of the range) from the January 12th lows to the March 13th highs. We continue to be friendly the corn market, but this level must hold on a closing basis for us to keep our bullish bias. A break and close below could encourage some additional long liquidation from the funds. On the resistance side of things, the first pocket comes in from 387 ¼-389 ¾. This pocket represents a key retracement, support last week, and the 50-day moving average.
Resistance: 387 ¼-389 ¾**, 392 ½-393***, 400 ½-402 ¾****
Support: 379 ½-383 ½****, 377 ½**, 362-365 ¼***
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