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Corn Spends Christmas Eve on the Defensive

Strong export/sales were seen today at 804K tonnes. Not only was that number large enough to avoid disappointment but it even beat the high end expectations of analysts. Corn still spent most of the day on the defensive likely due to so few traders being around to add support. Total volume was extremely low which was expected for Christmas Eve.

Due to low volume trade, the bulls should not give up hope that corn will see a bounce back from these sales unless corn continues the grind lower to start next week. Volume for the entire next week should also be low but certainly enough to react to the strong export report seen today. March has a contract low of 362 1/2. Support beyond that goes to the continuous chart where follow up levels are 356 and 346 1/2...
— Ryan Ettner

    •    Strong exports were seen today of 804K tonnes, while there was no immediate bounce bulls should not be discouraged yet
    •    Even though volume will be lower than average next week, bulls will still want to see some type of bounce early next week
    •    The dollar spent this week grinding lower, while much more is needed to see a true effect on exports it will be helpful if the grind continues

    •    Bears have had a recent advantage that no news or waiting for news has been on the side of the sellers recently
    •    Sellers should avoid chasing corn lower at these levels but have solid resistance to sell from again in the mid 370's.

Rich Nelson

Allendale Inc. 

This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale Inc.’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Allendale Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

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