CORN: STEADY – EASIER

Post 625 of 799

In spite of starting out lower, corn closed three and one-quarter higher yesterday with funds buying 5K contracts on the day. Commission houses were the best buyers as they try to even up ahead of the end of the year. The trade is nervously watching the developments in China over GMO issues. There may be as much as 600 TMT rejected. The USDA announced 278 TMT of corn sold to Japan. Weather conditions in Argentina seem to be getting hotter and drier, worrying the trade. Resistance in Mar. is $4.30 and then $4.40. Support is $4.23 and then $4.19. Technically the market looks weak, but we need to take out the recent lows to continue the down trend. We look for a holiday bounce in this area as the spec crowd even up for the holidays. Maybe it has already occurred. Informa will be out today with their 2014 planting ideas. That may set the tone mid­morning. As usual, look for a two-sided trade today.

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