Corn prices tested the spike low at $6.29 by trading down to $6.33 yesterday. Now they’re bounce a little bit with overhead resistance at $6.84 on the nearby July chart.
This chart is a weekly chart and shows the nearby contract so our high prices so far this spring was $7.75. That was prior to the May contract expiring. After the May contract expired July corn traded down to about $6.33 and therefore, on a weekly chart we’ve had a $1.42 setback. The setbacks we had earlier in the year were 50 cents and 49 cents. This is fairly typically. If we look at 2010 rally that took place. Early in rally we had setbacks of 74 cents and 99 cents but as prices got higher we saw setbacks of $1.26 and $1.24 so what we’re seeing right now is fairly typically for a big market pushing towards all-time highs.