09/26/2016 8:19:29 AM
Corn is lower this morning as drier weather is seen short term for the Midwest. Harvest pace is to ramp up across the Midwest this week.
While farmer selling of corn remains light, nearby basis levels continue to soften to new crop levels.
Export news is quiet other than routine business to Japan, Mexico and Latin America. Cheaper Black Sea feed grains still pulling end user demand away from US corn.
Quarterly Stocks report is out Friday with traders anticipating finding corn stocks and resulting lower residual/feed demand.
Monthly US Cattle on Feed report seen as supportive to corn longer term as numbers increase.
The Commitment of Traders report confirmed the spec funds holding their large short position in corn for now. Open interest in corn jumped 13k contracts (mostly in March and Dec).
Look for defensive trade with support in CZ at $3.29-3.30 short term.