Demand For U.S. Corn Offers Price Support
In an almost direct copy of yesterday, corn saw the beans/wheat lower which spilled over resistance until corn setback about 2 cents before finding active support again. Also adding support was finding 365K tonnes of corn in an 8 AM sales announcement, keeping the streak of recent strong exports going in this market.
Yesterday's export report put the total corn exports back on pace with USDA expectations, another strong report could actually put corn ahead of pace for the first time this marketing year. While the chart still suggests this market is bound to find a 5 - 7 cent correction at some point exports are strong enough to keep putting in good support on just 2 cent pullbacks.
Early next week, corn traders should keep focus again on both South American weather maps for bean spill over influence as well as HRW area forecasts for wheat influence. Trade might remain calm for the first part of next week ahead of Thursday's February Supply/Demand report. We should see estimates for that report on Monday with trade likely not fearing as much of a drastic change as was possible on the January report. Let's look for a relatively slow start to the week with early influence coming from analysts' estimates on USDA report as well as spill over influence from wheat/beans.
-USDA reported, this morning, that 365,000 tonnes of corn was sold to Egypt and unknown, this continues the recent active streak of sales.
-Once again, over 2K contract buy orders were found on just a 2 cent setback today, underlying support continues
-Early thoughts are that next week's report could result in a slight carryout decline, official estimates likely out on Monday
--For a good size correction bears will be looking for a surprising bearish report on Thursday
--The last couple days have shown that bears will want to look for something more than spill over resistance as it hasn't been enough alone to cause a sizable pullback
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