Corn Tech Update

July futures take over as the largest open interest contract this week, and have spent much of the time on the defensive. Demand destruction, and a more favorable weather forecast have markets across the AG sector weaker. For corn the question becomes with funds already record short, are there enough new willing sellers to start the market on another leg lower?

Corn prices inched precariously towards contract lows today. Despite the losses, the market has seen declining daily volume on higher open interest, a sign of intra-commodity spreading and declining interest. It will be important for the market to hold the 363-366 area the remainder this week, risk a move to continuation support another 10c lower. To the upside, the March report day high and 50-day moving average offer first real resistance at 380.

The corn market is succumbing to its overbearing fundamentals this week. Weather has turned drier, alleviating some of the U.S. planting concerns. Funds remain record short which if given a spark could turn the market higher in a hurry, but for now there’s been no such spark. Contract lows will be the key area to watch this week.