Corn Tech Update
Grain Market Commentary
Wednesday, April 11, 2018
by Jacob Christy, Freedom Program Trader
A quieter session for corn today. Traded volume was the lowest in seven sessions as traders took a step back. Prices spent most of the day in the green but a weaker session in wheat, and a late reversal lower in beans didn’t help sentiment.
Looking at the corn chart shows a volatile month of April, but July futures remain in their longer term uptrend. Prices have struggled to clear 400 for the past month, setting up a clear top. The market has again moved into deeply overbought territory with the stochastics close to giving a strong sell signal, which would reinforce a correction lower. To the downside the market has found support at the cluster of major moving averages from 378-387.
Thought it’s been a volatile month for the corn market, price trends and ranges remain intact. Keep a close eye on the 400 mark for July futures as it’s held the rally on three separate occasions. Initial support comes in at the 50-day moving average at 387. Hard to see the market bucking it’s major trend until more is known about the U.S. crop potential. With that said, the markets inability to clear 400 and it’s overbought condition opens the door for a slight corrective move lower in the short term.