Corn Futures
Corn futures in the March contract are experiencing a very quiet trade this Wednesday afternoon in Chicago currently up 1 cent at 3.67 a bushel reversing earlier losses as this market still remains bullish in my opinion.
I have been recommending 2 bullish positions with an average price of 3.58 if you took those trades continue place the stop loss under the 10 day low which stands at 3.61 as the chart structure is outstanding at the present time due to the lack of volatility which is extremely low.
The chart structure will start to improve in next week’s trade as prices tested the critical 3.70 level in yesterday’s trade only to sell off finishing near session lows, but if that level is broken then I think higher prices are ahead as corn is following the footsteps of soybean meal which is hitting another contract high today due to the fact of a drought occurring in the country of Argentina.
Corn prices are trading above their 20 and 100 day moving average as the trend clearly is to the upside as we await the highly anticipated USDA crop report which will be released next month showing how many acres will be planted in the United States as expectations are very large which has been detrimental to corn prices over the last several years.
Volatility in corn certainly will start to increase once spring arrives as I think all of the bad fundamental news has already been reflected into this price as historically speaking I think corn prices are cheap and if I was a farmer I would not be selling.
TREND: –HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY—LOW
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