Corn Tech Update
Grain Market Commentary
Wednesday, May 8, 2019
by Jacob Christy, Freedom Program Trader
An interesting week for the corn market. Prices gapped lower Sunday night were losses hit 15c as trade tensions took a sour tone. The market then turned higher to fill the gap yesterday, before weakness took a hold again today. Trade is balancing on a knife’s edge with plenty of risk heading into Friday’s make or break trade negotiations, along with the USDA’s May crop report.
Corn has turned a bit more choppy here midweek. The trade jitters are still evident in watching the minute by minute price movements that have become very sporadic. Though July futures are at mid-range, feels like we’re seeing the calm before the storm. To the upside the market hasn’t spent significant time above the 50-day moving average since January and hasn’t been above the 200-day in a year. Contract lows are obviously key support.
The short-term price direction is going to take a big influence from Fridays key events. Technicals will matter very little in an environment where the trade war is either solved or escalated. Add in the USDA crop report, and ongoing weather issues in the U.S., and the market has a few major pieces to play with. Stay tuned for what should an interesting end to an already eventful week.