Fundamentals: Corn futures broke out above the psychologically significant $5.00 handle last week, finishing 35 ¼ cents higher for the week. Friday’s Commitment of Traders report showed funds added 31,976 contracts, expanding their net-long position to 360,184 contracts. Corn futures were softer Monday night but have rebounded in the early morning trade on strength from wheat, which comes as Russia announced a $1.65 export tax after March 1st. Ukraine is debating whether or not to limit corn exports, which will be decided by January 25th. Harvest of Brazils first crop is 3.4% complete, .9% ahead of last year’s pace.
Technicals: The momentum is strong and the appetite from funds remains stout as the path of least resistance continues to be up and to the right. The Commitments of Traders report is as stretched as it has ever been, which continues to be a caution flag. As mentioned, dozens of times in the recent weeks, finding meaningful technical resistance when we are in “uncharted territory” becomes a fool’s errand. First technical support comes in from........Click this link to read the FULL report and receive our daily commentary
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