Corn Tech Update
Grain Market Commentary
Wednesday, October 16, 2019
by Jacob Christy, Freedom Program Trader, The Andersons
A consolidating week so far for most Ag markets. Corn not exempt as a lack of fresh bullish inputs has stalled the recent upward momentum. Despite the inability to push higher, the market has also been resilient on breaks, leading to a choppy week. As new variables look a few days or weeks away consolidation might be here to stay and with that comes a threat to the longer term trend.
Dec19 futures completed a nice head and shoulders bottom from August through September. Since then prices have maneuvered within a now well established ascending trend channel. With the upward momentum prices were able to breach above 400 Sunday night for the first time since the shock of the August crop report. Although prices only trading above the psychological mark for a brief time, by doing so achieved quite a few upward chart objectives including the head and shoulders objective at 401.
Since reaching those price targets futures have turned lower. During the run up the market moved into overbought territory, so an initial set back isn’t surprising. But now the lower end of the upward channel is at risk. Eyes will be on whether the market can hold its longer term upward trend and if so can enough new momentum take prices above the sought after 401-402 objective. Stay tuned.