Corn bulls are happy to see Mexico continuing to step up as large purchasers of U.S. supply.
Yesterday's buy of over 53 million bushels is thought to be one of the top-10 largest single day purchases of U.S. corn in our nation's history. Lets' also keep in mind, South Korean buyers have been a bit more active as of late in the global marketplace.
Unfortunately, bears continue to point to the fact the U.S. crop might still be getting larger, meaning perhaps ending stocks might still be getting a bit more burdensome. Informa updated their yield estimate yesterday and bumped their forecast higher by +2.9 bushels per acre to 173.4 bpa, with total U.S. production just north of 14.4 billion bushels per acre vs. the USDA at 171.8 bushels per acre and total production at 14.28 billion bushels.
From a technical standpoint, it still feels like there's fairly significant nearby chart resistance up int he $3.60 to $3.65 range. A bit longer-term it seems the $3.75 to $3.90 area will be extremely difficult to overcome without some type of widespread production hiccup in South America. Looking for next Thursday's USDA report to dictate the next small move.
I'm hoping the USDA doesn't raise their yield estimate as much as some are talking about.