Corn Tech Update
Grain Market Commentary
Wednesday, May 17, 2017
by Jacob Christy, Freedom Program Trader
Corn remains range bound, plain and simple. Prices have traded the same 30c range since October as the market has lacked a true catalyst since harvest. Now, as we enter into the heart of the U.S. growing season it makes sense the market finds itself at the mid-point of the range poised for a bigger move if weather tips one way or the other.
Looking at the chart shows the market once again held support to start the week, before short covering today brought prices back to the major moving averages. July futures were able to close above the 200-, 50-, and 20-day moving averages today as funds covered some of their massive short position. However even with the highest close in a week, the market is still only at mid-range and still under the 100-day moving average. To the upside, 380 is a critical point for the market as it has failed to rally above the mark on three occasions since April. To the downside the Mid-360 area looks to be a strong support range until more is known about the U.S. crop.
Range bound is the theme. Volatility and traded volume have both grinded lower in the corn market proving the markets overwhelming complacency. Keep an eye on the upper and lower ends of the recent trading range from 360-380 as a breach of either gives channel break objectives of another 18c. Until then, grab a seat, and join the wait and see crowd.