Corn Tech Update
Grain Market Commentary
Wednesday, April 19, 2017
by Jacob Christy, Freedom Program Trader
As trade enters the U.S. planting season, all eyes have shifted to the weather. Ag prices have consolidating, waiting for something to set the short-term direction. The corn market is particularly lacking excitement with prices stuck for seven months now. With volume and volatility dropping, choppy trade may be the continued theme.
Looking at the corn chart shows why volatility is near its lowest levels in months. Prices have lacked direction since October, with the December contract trading a 25 cent since harvest. Dec17 futures are now between all its major moving averages seemingly waiting for something, anything, to give it a trend. Funds do remain sizably short heading into the growing season, but until the market can break the old highs, the shorts will have no reasons to panic. Momentum indicators are coming off sell signals last week, but like the market, have stalled at midrange.
Corn futures are stuck. Weather will be the biggest driver of prices moving forward with U.S. growing season upon us. Keep an eye on the upper and lower ends of the recent range, as it probably takes a move out of the range to entice further action by the funds, and thus a new trend.