Corn Tech Update
Grain Market Commentary
Wednesday, November 8, 2017
by Jacob Christy, Freedom Program Trader
An outside session for the corn market today, but lackluster non the less. The market seems more than content to sit and wait for the USDA crop report tomorrow. Corn futures still sit in their longer term range, although just pennies off contract lows. With the chart coiled and the added weight of a crop report tomorrow, the technical direction of corn will be determined over the next few sessions.
It’s hard to argue the momentum of the corn market isn’t lower. The descending triangle remains the main feature in the Dec17 corn chart. Until the market can breach some of its old highs, the chart remains in a bearish stance. Now this could all change with a surprise in the report tomorrow as the downward trend can be busted with a close above the 50-day moving average which sits just five cents above the market. ON the flip side a break to new contract lows gives formation objectives to 328-335, which nicely coincide with the old continuation lows, and Fibonacci extensions.
Normally techncials can be thrown out the window heading into a crop report. This time however, with the market so coiled, and highly leveraged by the near record short fund, these key chart points will need to be closely monitored. Short term direction probably gets determined by the close Friday. Sustain a move above 350 and it probably confirms the lows are in, squeezing some of the fund short out, while a break could spell an acceleration of the downtrend. Stay tuned.