Corn Tech Update

Grain Market Commentary

Thursday, April 1, 2021

by Jacob Christy, Senior Merchant, The Andersons

An incredible two sessions to finish the holiday shortened week. Lock limit up post-report yesterday with synthetics showing markets trading double digit gains above that. A 10c gap higher into new contract highs to match the synthetics had futures within 15c of 600 overnight. However, the algos and money flow crushed the overnight momentum sending prices to a lower close while scoring a key downside reversal. Again, an incredible two sessions.

CK21 futures score a huge falling star candlestick today, a formation indicative of reversing momentum. Upside enthusiasm waned through the session and the buying interest that gapped prices higher overnight was gone by days end. A big session when we come back from the holiday weekend to confirm or debunk the falling star. Enticing buying at this 559-564 range from the old range top to the report day high will be needed less further upside momentum is lost.

Writing technical comments is difficult sometimes. The whipsaw prices have seen since 12pm yesterday makes this one of those times. Obviously, you don’t want to discount the lock limit trade we saw yesterday, but today’s massive volume reversal cannot be ignored. The times of bigger position limits and money flow are here. Feels like the post report dust hasn’t settled yet. Until then we’ll just have to wait for the true technical pattern to show up. Stay tuned.

The Andersons Tech Update