Corn Tech Update

The corn market continues to consolidate inside a long-standing wedge or sideways triangle pattern. Prices were able to find support at the 50-day moving average yesterday and bounced of the 20-day today. Holding above the moving averages is a good sign, but momentum indicators have moved into overbought territory which could keep new buying interest on the sideline. Moving outside the main triangle formation would open the market to a test of 367 to the downside, while upside targets rest at the combination of old highs and 200-day moving average near 390.

Prices are taking direction from a few fundamental issues. With the market tightly coiled by the wedge formation, a breach in either direction could uncap some pent up speculative positioning. The market is likely to expand its price paradigm in the next few weeks.