Corn Tech Update
Grain Market Commentary
Tuesday, May 26, 2020
by Jacob Christy, Senior Merchant, The Andersons
Corn still stuck in the mud. July futures have been unable to hold gains or push to new lows, leading to more range bound trade. With the market balancing big supplies with better than expected demand, the corn chart has been pretty boring. That said prices are showing initial signs of life and have begun testing chart resistance
Looking at the corn chart you can see how lack-luster the market has been. The 310-325 range has captured price action for the last month. That said, prices are testing the quicker exponential moving averages on a day to day basis but have yet to clear them in a major way. The 26-day exponential in particular has been a clear barrier for rallies. July futures have yet to see back-to-back closes above the indictor this year.
The corn market is limping into testing initial resistance indicators as they come down to meet the depressed price. Typically breaking the quicker resistance doesn’t instill much confidence, but funds are 250k contracts short. Getting above the 26-day could spark a quick knee jerk short covering pop, especially with month end Friday. However, getting above the 26-day might take more than a smile. Stay tuned.