Corn Tech Update
Grain Market Commentary
Wednesday, November 27, 2019
by Jacob Christy, Freedom Program Trader, The Andersons
Corn prices slid again today as positioning ahead of month end and first notice day dominated the pre-holiday session. March futures closed at their lowest level since September while Dec20 and Dec21 futures fell to fresh contract lows. The market is entrenched in a downward trend channel with bears in control.
Looking at the chart shows the dominant downward trend. With today’s declines continuation prices slipped into the key chart gap from September which likely has been a target for most bears. An oversold composition should make further declines more difficult once we move past month end. That said the market will need to prove it can hold gains before shorts get spooked.
It’s been a rough month and a half for the corn market which continues to get beat up. The market’s composition is a tinder box, but we’ve lacked a match. Until the short is given a reason to exit they likely remain comfortable. As the saying goes “the trend is your friend”.