Corn Tech Update
Grain Market Commentary
Wednesday, December 5, 2018
by Jacob Christy, Freedom Program Trader
A quiet session for the corn market as the U.S. remembered President George H. W. Bush. Equity markets were closed and CBOT traders seemed unengaged. Corn prices did manage to continue their climb with prices now close to 20c off the late November low. With so much uncertainty regarding the U.S.-Chinese trade truce it should be no surprise the market sits on a knifes edge near mid-range.
The chart gap over the 50- and 100-day moving averages left from Sunday night’s open remains the main chart feature. Prices attempted to fill the gap early yesterday but could not, indicating lingering buying interest. Prices look set to test the October and November highs near 390 in the March futures contract. Above there look for the 200-day moving average and August high to provide stiff resistance. Support remains at the open chart gap.
The corn market sits susceptible to headline risk in the short term, particularly if China agrees to buy corn for its reserves. It is clear the market is starving for more details on the trade truce. Until the picture gets clearer expect nervous and potentially choppy trade. With that said 370 looks to be strong support and 390 offers stiff resistance.