Corn Tech Update

Corn extended the lower end of its range last week, but for now has held above 370. Prices look rangebound but might spend some time in price discovery mode to determine the lower end of that range here short term. The market is woefully oversold which could make further declines more difficult and 370 the logical low for now.

Dec19 futures slipped through its 50-day moving average for the first time in nearly two months last week, breaking the 380-range low. Since then prices have shown resilience at the September 30 stocks report low which remember was where the USDA dropped old crop stocks some 300million bushels. Falling below the report day low or taking out the 200-day reinforced 400 mark might both take new fundamental information the market likely won’t get until January.

With Dec options rolling off the board in two weeks, technical focus will soon shift to the March20 contract. This will bring the continuation price back into a well-established range from 365-400, which likely holds near term. Getting futures back above the 20- and 50-day moving averages would go a long way in quelling some downside fears. While an open chart gap in the continuation chart calls from 358-366.