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Yesterday’s Close: July corn futures finished the session up ½ of a cent, this after trading in a range of 6 ¼ cents. Funds were estimated sellers of 4,000 contracts on the day.
Fundamentals: Grain futures started the week on stronger footing thanks to positive developments with China and on-going concerns over the crop in Brazil. The recent headlines regarding trade should be taken with a grain of salt as there are no details yet. Weekly export inspections came in at 1,527,994 metric tons. The USDA released their weekly Crop Progress report yesterday which showed that 81% of the corn crop is now planted with 50% emerged; both of these are in line with the 5-year average. Weather here in the states will start to become more important as this crop starts to develop.
Technicals: The market made a run at the top end of the range yesterday which we have had defined as 407-408 ½. As mentioned in yesterday’s report: “If you have been long the market this would be a spot to look at reducing or hedging if you’re a producer”. We continue to be friendly the market over the intermediate term, but we have been rangebound for the last month which as provided some excellent opportunities to be nimble. If the market cannot stage a breakout, we would not be surprised to see prices retreat towards the lower end of the range which comes in from 394 ¼-397 ¼.
Resistance: 407-408 ½***, 425 ¾-426 ½**
Support: 394 ¼-397 ¼***, 390 ½**, 379 ½-383 ½****
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