Corn prices today fell sharply and tested chart support where our uptrend line comes into play and also our 40-day moving average.
If that doesn’t hold the next level of chart support will be last week’s lows at 7.69 per bushel.
We think that the long-term trend will remain up but in the short-term additional back and forth choppy trade is certainly possible.
Today was an inside day, meaning we did not take out yesterday’s high or low. It was a day of consolidation with prices slightly lower.
Overall, the long-term trend, intermediate trend, and the short-term trend is up.
There is no sign of topping action in the corn market as of today with the next level of overhead resistance at the highs posted 2.5 weeks ago at 8.24.
Our current year crop stock was unchanged at 1.44 billion bushels.
New crop stocks estimated at 1.36 but this was well above what the trade was expecting and considered lightly negative.
It is projected that this year’s stocks will be in the 1.1-1.2 billon range, if that’s true that will be the lowest going back to the drought years following 2012.
Corns prices found chart support early this week down at the 40-day moving average and where our uptrend line comes into play.
Today markets bounced back down and testing that level again.
We can’t rule out the market testing this week’s lows at 7.69 but overall, we are not looking for a bearish trend to develop.
Corn prices bouncing again for the third day in a row which was enough to turn technical indicators higher.
This market looks from a chart and technical perspective like it may want to retest the highs from a few weeks ago at 8.24.
The corn chart has turned higher, stabilized yesterday and turned higher today. This was enough to turn the technical indicators higher.
We do have a crop report tomorrow that could provide some surprises. But the chart and technical indicators do indicate some bottoming action and the potential for higher prices.
Corn prices today did hold chart support at our uptrend line and where our 40-day moving average comes into play, but it was an inside day ending slightly higher.
The short-term chart is still pointed downward but we are sitting right at significant chart support and technical indicators are in the oversold area.
Corn prices have now fallen back 55 cents off the highs posted on April 29th.
We have come back down to our upward trendline and where the 40-day moving average comes into play.
Technical indicators getting very close to the oversold level, we would expect to find chart support around today’s low.