Corn prices, although we bounced higher today, are still showing signs of wanting to be in somewhat of a down trend given the fact that the highs were posted over 2 weeks ago and the recent high did not take out the previous high.

We are establishing, at least in the short term, a gradual down trend.

But today was an impressive day so we are getting very mixed signals from the chart and the technical. The chart on the short trend is looking like it may be trying to turn down, similar in the technical indicators where we’ve been up and down.

There has not been a solid pattern on the chart or technical over the last couple weeks.

Current chart support on the July corn is 6.85-6.90 with overhead resistance at 7.47. Todays close at 7.18 was very close of the middle of that trading range.

Corn prices had been chopping back and forth in a sideways range for nearly 2 weeks.

Today the chart broke out to the downside, so that is somewhat of a negative factor from a chart perspective with technical indicators clearly turning down today as well.

Speculators and long position traders, a move like today spooked them a little bit and we would not rule out a further pull back to the downside, but we do have some fairly significant chart support around the 3.85 level and that’s about 10-12 cents below where we closed today.

Long term the chart sis pointed upward, and we don’t believe hat that trend will change in fact would not be surprised if new highs were posted at some point going into early spring/summer.

But in the short term, the corn market, at least for now is in somewhat of a corrective mode to the downside.

Our forecast for continuing strong US demand is not just based on our domestic demand but also strong global demand.

This chart shows the monthly global corn trade, the red line has been above the previous two years the last 4 months indicating that global demand for corn is strong as the world continues to try to come out of the global pandemic.

Corn prices have been chopping sideways range for about a week and half now. The markets rallied sharply on the Russia invasion of Ukraine and now we pull back and are chopping at a sideways range close to the recent highs, so corn prices have pulled back just a little bit.

Prices worked there way close to the $7 mark today on the July chart, but we did turn around and close at 7.23.

Sharply lower prices earlier today followed by a rebound. Bottom line is that corn prices remain stuck fairly close to the middle of our recent range.

While the chart chopped in a narrow range and somewhat of a sideways range for a week and a half, technical indicators also chopped sideways indicating no strong trend at least over the past week and a half.

Most buyers have now switched to pricing off July charts, so we have switched over to July.

As you can see for about the last week and half the market has been mostly in a consolidated nature. We have not posted new highs since they hit 7.47 on the July board a little over a week ago, this indicates that the trade is uncertain what to do at this point.

The funds and speculators are already long, do they add more or start to look to take profits and exit.

At this point there isn’t a clear direction, so the funds and speculators are sitting tight with prices chopping back and forth.

If prices should explode to the upside and make new highs it may create the next selling opportunity, while prices would fall sharply and nothing major has changed that might create the next buying opportunity.

But for now, we are sitting tight with prices chopping back and forth near the upper end of the range.

Corn didn’t set a new high for this move, but we did have a new high close for this move. This would have been the highest move we’ve had on the July 2022 corn contract.

A few areas where we have support are the 10-day moving average in green at 7.12 just below where the lowest market was for today and then right below that is an uptrend line at 7.05 area.

Todays close was a good close to see in the corn market.

Corn prices did rally today, but we did not take out the high posted last week at 7.82. That would be overhead resistance with current chart support the double bottom that’s been established, at least so far, at 7.28 both Tuesday and again today.

Todays close at 7.55 is 27 cents above the chart support and 27 cents below the overhead resistance.

Anything within this range is fair game over the next week or so, with day-to-day headlines regarding the Russian/Ukraine war likely to provide the primary price direction in the near term.

Corn prices had a sharp down day, now we didn’t make a new low, did not take out yesterdays low, but we did make a new low close at 7.33. That’s almost 50 cents below the high that was posted last week on Friday.

From a chart perspective, the chart is looking slightly negative and slightly toppy, technical indicators have turned down as well.

Chart and technical would certainly tell us that there may be some additional downside risks in the near term, but before we get overly barrish we are expecting this market to remain extremely volatile in the next few months.

Current chart support may be eying a gap in the market from a week ago, which is around the 6.85-6.88 level. That’s 40-50 cents below where we traded today.

Even if the market did trade down into the gap level to fill that gap, the overall trend is still and uptrend.