March corn is trading down 1/2 cent near 7:30 am cst and the December 2013 contract is down 3 cents. The US Dollar is higher to start the day as the Yen weakens. The Euro is also seeing a modest loss which is helping to push the Dollar higher. US equities are set to open up slightly higher after Alcoa's earnings fell in line with the street's estimates and revenues beat.
Firm cash markets, strong action in calendar spreads, and thoughts that Friday's USDA reports could lean to the bull camp has kept a strong, supportive tone in the market short term. Yesterday's volume was pegged at 193,050 contracts and OI jumped by 3,568 contracts after increasing 4,523 on Tuesday. The steady increases in OI along with a fair amount of supportive options activity in the last two weeks suggests many in the market have a bullish tilt heading into the report. This is the last production report of the year and futures have moved limit up or limit down in 5 of the last 6 years.
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