July Corn closed 4 ¾ cents lower ($3.89 ¾), Sept 5 ¼ cents lower ($3.98 ½) & Dec 4 ¾ cents lower ($4.08)
June Chgo Ethanol closed $0.025 cents a gallon lower ($1.367) & July $0.023 cents lower ($1.377)
Weekly Corn Export Sales – 442.0 K T. old crop vs. 200-600 K T. expected – 183.9 K T. new crop vs. 50-450 K T. expected
Since the government has thrown a monkey wrench into the works today’s commentary will deal with what the charts are trying to suggest. Trying to figure out the end game of this new program with its vague outline is way above my pay grade.
Given the sharp run higher over the past week and a half and now the flip-flop motion against resistance levels that were established months ago corn charts are suggesting we are in line for a decent looking correction. July corn has honored the resistance at the $4.00 mark. The best looking support on the daily charts comes into focus down around the $3.75 to $3.70 level. Back in May of 2018 Dec corn gave us a topping formation in the mid-high $4.10’s to the low $4.20’s. That area of suspected resistance was honored this week. The high intra-day volatility suggests we are in line for a decent correction. The daily Dec corn chart suggests the best looking support is down in the mid-high $3.80’s. Inter-day charts suggest support could come as soon as the mid-low $3.90’s. My bottom line is that the corn charts are suggesting the market is ripe for a correction.
The best case scenario for Friday’s trade is consolidation as the trade tries to digest the excessive moisture in the near term forecast vs. what the government program really means.
Daily Support & Resistance for 05/24
July Corn: $3.84 – $3.95
Dec Corn: $4.02 – $4.14
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.