Corn Tech Update
Grain Market Commentary
Friday, February 26, 2021
by Jacob Christy, Senior Merchant, The Andersons
Another day of speculative liquidation as we finished the month with a thud. Prices sunk 18c from Thursday morning’s highs after things looked primed for a breakout. The market did shake off most of its early loses by the close but continue to sit precariously above key support with bears chomping at the bit to confirm a top.
After closing above the selloff day high on Wednesday, May corn futures looked ready for a test of the old highs. However, prices just couldn’t shake off the month end liquidation and got some pretty negative reversal chart action yesterday. Prices managed to find continued support at both the short term trendline along with the 26-day exponential moving average. These supports, not only key on their own, also sit at the bottom of a potential head and shoulders top that if confirmed would have bears rejoicing.
The 26-day might hold the key. The indicator has held breaks since the rally began. Failing to remain above the quicker moving average would be a definite blow to momentum while simultaneously could confirm the head and shoulders top. Trade will look to hold the 530-537 range next week with a specific eye on the 26-day. Stay tuned.