Corn Tech Update

A huge week for corn prices that saw front month futures rise 74c from Friday’s close. New crop not left behind either with CZ21 gaining 45c. Weather premiums both from the U.S. and Brazil along with tailwinds form the energy and macro markets sparked massive money flow into the sector. This had corn up its 25c limit Thursday with all contracts reaching new highs and long-term chart objectives being met in the continuation.

With this week’s rally front end futures were able to close a long-standing open gap in the continuation chart at 625. The top of this gap had been an upside objective since futures pushed above the 500 mark. Prices added 30c on top of that with May reaching over the 650 mark. The more highly traded CN21 also scored a close above 625 yesterday, and after early profit taking this morning, managed another new contract high close today.

The contract high close and upward momentum look to carry old crop higher next week. However, if we see a correction from today’s high expect the combination of the quicker exponential day moving averages and the recent runs main Fibonacci band to catch breaks in the 563-591 range. Even then, a close below the old congestion range top at 550 is needed to turn momentum lower.

The 2020-2021 bull market continues to accelerate. Closing the continuation gap was a big feat, one that was met with even more buying. Along with prices, volatility also went through the roof. With volatility soaring and limits set to expand daily price ranges should only grow from here, setting the stage for a wild ride ahead. Stay tuned.