Corn Tech Update
Grain Market Commentary
Tuesday, June 23, 2020
by Jacob Christy, Senior Merchant, The Andersons
An abysmal day for the new crop corn chart. After a few weeks of consolidation above recent lows, the market looked poised for further advances above key resistance. But a combination of non-threatening weather, and growing doubt over the Chinese buying program have put bears back in control. Prices hit their lowest level this month at today’s close and now look shaky in trying to find a foot hold above contract lows before next week’s USDA figures.
Dec corn futures were under pressure almost the entire session. Falling below key support early and finishing below the recently broken 50-day moving average for the first time since June fourth. Prices will work to get back above the 50-day to provide some stabilization to the chart. Even better, getting back above 340 would put the market above more support, giving a healthier feel. Obviously, contract lows are key support.
Prices spent most of April and May in the range between 330-336 as the market priced in 97 million acres and the worst effects of COVID-19. It will be important for the market to again find buying interest in this range. Otherwise the door is opened for further losses, which could accelerate as farmers become more natural sellers. Stay tuned.