Corn Tech Update
Grain Market Commentary
Thursday, October 10, 2019
by Jacob Christy, Freedom Program Trader, The Andersons
A disappointing day for corn as the USDA raises yield contrary to trade expectations. Dec19 futures see their biggest drop since the August crop report, finishing down 14c. Prices now sit precariously above key supports, teetering on breaking an upward trend started five weeks ago.
The corn chart completed a nice head and shoulder bottom through late august and early September. This set the stage to fill the open chart gap left near 392, which the market achieved Tuesday. Prices then sat in wait-and-see mode for today’s today, ultimately left disappointed.
Despite the selloff, the upward trend remains intact. For now. Holding the 50-day moving average and trend line support was a good sign, but both will be closely monitored moving forward. The market is deeply overbought which could open the door for further liquidation, but with so much uncertainty left on the table, expect bargain buying if prices dip too far.