Corn Tech Update
Grain Market Commentary
Wednesday, October 21, 2020
by Jacob Christy, Senior Merchant, The Andersons
Corn trades one-year highs overnight as global demand remains robust. Surging premiums in all exporting countries have buyers scrambling. Importing countries like China, Japan, and Mexico do not want to be the last one standing when the music stops amid fears of food inflation. This has corn higher in nine of the last 12 sessions and 93c higher since the August 12th low.
Looking at the corn chart shows a market on fire. Prices have shown almost no weakness since August. Even semi-reversal days like last Friday have been buying opportunities. Getting above the old 401-404 congestion area now puts the old contract highs at 424 as the next clear target. However, with a market out-pacing it’s support indicators any failure could open up for a deeper correction with true support not coming in until sub 400.
The corn trend is higher. That’s easy to see. Despite being deeply overbought with many indicators overextended, it’s been the bears who have been overwhelmed. Bulls are enjoying the ride for now, and until the fundamental demand picture changes the path of least resistance continues to look higher. Stay Tuned.