Corn Tech Update

A quiet day with volume in decline as the corn market has turned sideways. Trade seems content on playing the waiting game as robust harvest remains a couple weeks away. Add in the month end stocks report and October harvest area question mark, and there’s enough cause for pause.

Dec19 corn futures look stuck between 360 and 380. Short covering has prices 20c off their contract lows scored earlier this month. That seems enough for now. With catch up farmer selling to be had, the additional fund repositioning this week has been met with new farmer sales. The compositional short is now merely changing hands from fund to farmer, leaving prices listless and at mid-range.

Looking more into the chart, the open gap at 390 should act as an attractor near term. That said, to fill the gap the market will need to breach some long standing trendline resistance. With the lack luster interest seen above 380, the market might be hard pressed to gain enough momentum to even test the gap without new variables. To the downside the report day reversal high has provided support the past four sessions.  

Not a lot new to get to. Even though there’s enough potential stories to go around, confirmation is need to push the market out of range. Expect more choppiness until trade gets behind a new story, which looks at least a couple weeks away.