Corn Tech Update

Grain Market Commentary

Thursday, October 12, 2017

by Jacob Christy, Freedom Program Trader

The corn market remains sideways as it awaits today’s update from the USDA. Volatility has also been lulled to sleep as the market has chopped in the 20c range for the last month. Pre-report positioning did push the market to the lower end of this range, but it’s clear the market doesn’t want to venture too far from current levels until U.S. yields are confirmed.

Looking at the corn chart shows a pretty lack luster trade over the past month. Dec17 futures have been stuck between its contract lows and 362 September high for over a month. The contracts 20-day moving average has provided resistance almost every session going back to early September. Though only 5c above current levels the 20-day will need to be cleared, and rather convincingly, for the market to garner fresh upward momentum.  Above the 20-day is the 50-day moving average which coincided with the range top. Fibonacci extensions would point to a downside break target near 333.

Corn prices are going to be largely dictated by the report today, along with harvest results in the month ahead. The corn chart is featureless outside of the range bound trade. Expect that to be changed with the reaction today as the short term technical outlook is probably determined by 12:01 eastern this afternoon. 

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