Corn prices pushed lower on a more favorable weather outlook for planting next week and prices made a new low for the move at 7.76.

Today’s prices took out initial support at 7.80, the lows from 2 weeks ago, and we are now approaching our trend line and also the 40-day down around the 7.65-7.70 level.

If we get down to that level technical indicators may get into the oversold range.

The chart and technical indicators are pointed downwards, so it is possible for additional downside risks.

Corn prices trading on both sides of unchanged, overall, what we see is a pattern where the corn market is now consolidating.

We’ve been in a similar range for 2.5 weeks, overhead resistance at 8.24 and chart support 7.80.

Corn prices down sharply today, now the long-term trend is still an uptrend and the intermediate term trend, but we are having another correction.

As we mentioned, we’ve had a number of corrections in this market, we are going to have more corrections from time to time.

We believe todays correction to the downside is mostly just a correction with an overall up trending market.

The US weather for planting is far form ideal and thew Russia/Ukraine war is still ongoing restricting supplies from the Black Sea region.

We did close at 8.03, only 13 cents off the daily low.

 Current chart support would be at 7.80, last week’s low, overhead resistance at 8.24 which was Fridays high.  

Corn prices rebounded nicely, we made a high last week at 8.14, that’s overhead resistance.

We set new lows both Friday and early yesterday down around the 7.80 level, that 34 cent trading range has been in place for a week now.

Bullish news could push us to a new high while bearish news could push this market down into the 7.70-7.75 range.

Technical indicators had turned down significantly based on prices Friday into early yesterday but today strength and stronger close are trying to turn technical back up again.

Corn prices are in a long-term uptrend, the intermediate term trend is also upward, but the short-term trend has turned down off of last week’s high. Technical indicators have turned down as well.

Today’s strong close may allow our technical to turn up again but there needs to be some follow through for the prices to challenge the highs at 8.14 to keep the overall trend upward.

If we do not get bullish news this market could fall in to the 7.60 range.

Corn prices have not made new highs for a couple of days and even though today was sharply lower prices appear to be consolidating at least for the moment near the upper end of the range.

It does make the charts look a little bit toppy and enough to turn the technical indicators down as well.

Current overhead resistance on the July corn chart is at this week’s high at 8.14, that’s about 20 cents above todays close with chart support down in the 7.60-7.70 range.

Corn prices were higher overnight making a new high for the move at 8.14 but we did turn around and close lower.

So, a bit of a reversal day to the downside and a little bit disappointing for the bullish news. The chart is still pointed upward just had a disappointing close with technical indicators well overbought.

If we did see a further correction, support would come in at the 7.50-7.75 range.

Corn prices surged to 8.10 per bushel in fact May corn at 8.16 was just 27 cents short of the all-time high price recorded in August of 2012 during our massive drought of 2012.

So, corn prices very close to all-time record high levels.

Long term, intermediate, and short term are all pointed higher. The only area of caution would be when we look at some of our technical that are extremely overbought.

That doesn’t mean our prices have found a top it just tells us the market is becoming somewhat susceptible to a pull back.