Corn Futures—Corn futures in the July contract is trading lower for the 2nd consecutive session down another $0.06 at 3.17 a bushel or 1.86% continuing its bearish momentum as ideal weather conditions in the Midwestern part of the United States continue to put pressure on prices. Crude oil is down over $4 today as that situation seems to get worse and worse on a weekly basis as ethanol demand in the United States is at an historical low as fundamentally speaking corn has nothing going for it at the current time.
Estimates of the planting progress which will come out later this afternoon is around 25% of the crop should be planted as we experienced nice weather over the weekend as the large money managed funds are short 161,000 contracts as they still believe lower prices are ahead.
If you have been following my previous blogs you understand that I’m bearish and if you are short a futures contract I would continue to place the stop loss above the 10-day high standing at 3.37 as an exit strategy, however in tomorrow’s trade that will be lowered to 3.33 as the chart structure will continue to improve on a daily basis. In my opinion I believe prices will break the contract low and multi-year low as well which was hit on April 21st at 3.09 as I see no reason to be a buyer of this commodity.
CHART STRUCTURE: IMPROVING
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