Corn Tech Update
Grain Market Commentary
Wednesday, February 6, 2019
by Jacob Christy, Freedom Program Trader
Choppy, low volume, low volatility trade continues to dominate the corn market. Prices remain stuck in their long-established trading range awaiting Friday’s USDA crop reports. With little fresh news to entice bigger positioning it’s hard to see what breaks prices from their ranges before Friday.
Looking at the corn chart shows a methodical consolidation since September. Volatility has plummeted as prices have spent the last month in a 13c range. Hope is on the horizon as prices should make a defining move after Friday’s release of final production. If bullish look for a test of the 200-day moving average and old highs from 386-390. Downside support has formed from 372-375, but a bearish report day surprise could send the market to the post-harvest low of 367.
It’s been a long slow grind for the corn market since harvest as trade has lacked a compelling story. That looks to change with Friday’s USDA data dump. Expect the short and even mid-term trend to be established post report. Let’s hope that trend is something other than sideways.