Commentary
March corn futures rose 3 3/4 cents at $4.85 1/4 and near mid-range. It was another day or tug of war between wheat going one way, soybeans another, and corn stuck in between. Brazil’s crop weather remains in the forefront of the market in my view with too hot and dry in the Central/North areas and too wet in the south. The 2nd corn crop basis is on the rise as is the concern about total acreage and production prospects of the bigger corn crop of Brazil. Corn continues to fail at the 21-week moving average at 4.88. Not a coincidence. However key support is 4.74 and then 4.68 this week. Under 4.68 its katy bar the door to the 4.50 area, in my opinion. That is where the exiting Dec contract went Thanksgiving weekend. With Crude now below $70.00, corn needs help to sustain a rally to next resistance at 4.97 and then the Oct 20th high at 5.09. Beans, Meal, and/or wheat need to rally to prod corn higher or we need to see an uptick in demand in my opinion to see a sustained rally.
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