Corn prices pushed just slightly below trend line support this morning, but we turned around and closed higher.
This level, as we mentioned yesterday, does need to hold.
If it doesn’t hold it could open another 20-30 cents of downside risks going into harvest.
The short-term trend has turned downward, technical indicators also pointed downward.
Corn prices are still in an uptrend off the lows posted back in July.
Markets have pulled back, we had bullish news from the September crop report, bullish news a week ago on Russia’s referendum votes, and then a lack of bullish news Thursday through today has allowed the market to push lower.
Corn is now testing chart support at the bottom of its up-trending channel.
We closed below the 10- and 20-day moving averages for the first time going back earlier in the summer.
We bed to get some bullish news and find some support at the bottom of this up trending channel or risk pulling back into 6.36-6.42 range where we had a couple of tops back earlier in the summer.
USDA’s September crop report was issued one week ago, and the markets overall gave us a positive response.
This year 2022 when we look at a chart showing the monthly crop report, USDA lowered their yield from 175.6 to 172.5.
That’s a 2.9-bushel per acre reduction in the September report.
Overall, the report viewed as bullish as it appears the US crop is getting smaller.
The market believes we could drop a little bit further come October.
Corn prices are in an uptrend off the lows that were established back in July at 5.61.
Last week following USDA’s crop report we hit 6.99, basically hit the $7 level last week right at overhead resistance.
We have had a pullback to the short-term trend which has turned downwards.
Technical indicators turned downward as well over the last 3-4 trading sessions.
Today was a mixed today closing a fraction higher, chart support is in the 6.60-6.65 range with overhead resistance at $7.
Corn prices have rallied up to a $7 target.
We are right up against the $7 level and right up against the down trend line.
The technical indicators are overbought and todays slightly lower close did start to turn those technical indicators a little bit.
Initial chart support on a pullback would likely comeback into the 6.50-6.55 range.
Corn prices posted a new high for the move today up to 6.88, that continued the overall uptrend that has been in place off the July lows at 5.61.
Today’s close was disappointing, we closed at 6.71, 16 cents off the daily high.
The chart still looks good, but we do want to monitor those technical indicators which are just now in the overbought range.
Corn prices did not make a new high, in fact they turned around and closed significantly lower on the day.
This does start to hint that maybe we have a little bit of short-term topping action in the corn market.
Current chart support, if we did see a pullback, could come in at 7.33-7.37.
If this market does in fact see a correction for a few days chart support would come in at 7.25-7.35.
Corn had a very impressive day with the market moving sharply higher and closing sharply higher as well.
We have very nice chart patterns developing where we have consistently higher highs and consistently higher lows.
Chart and technical indicators pointed up.
The next level of overhead resistance is 6.82 spike lows from June.