Corn Futures
Corn futures in the May contract are currently trading higher by 2 cents to start off the week in Chicago as prices have experienced higher volatility in recent weeks as the Trump tariffs sent prices down about $0.25 from the March 13th high of 3.95 as a spike bottom was created last Friday around 3.69 while then rallying sharply towards the closing bell. At the current time, I’m not involved in corn as I was stopped out in last week’s trade as I do think last Friday’s trading action is very important as I think that was panic selling as prices have rebounded rather quickly as we enter the volatile spring & summer months.
Traders are awaiting this Thursday’s USDA crop report which will definitely send higher volatility into this market as estimates of this year’s planted acres are around 90.6 million which is pretty much the same as in 2017 as prices are now trading below their 20 day but still above their 100 day moving average which tells you that the trend is mixed.
In my opinion I think the downside is very limited in corn especially as spring planting is now about 3 weeks away and should keep a floor under this market as a weather premium generally is put into the price as I think the selloff is overdone & I still think corn prices are headed higher, but I will wait for the chart structure to improve before entering.
TREND: –MIXED
CHART STRUCTURE: POOR
VOLATILITY—INCREASING
