Corn Futures—Corn futures in the May contract continues its bearish momentum this Monday afternoon in Chicago down 2 cents lower for the 7th consecutive session hitting a 3 ½ year low currently trading at 3.27 a bushel continually grinding on a weekly basis to the downside.
The problem with corn is the fact that ethanol in the United States is experiencing very weak demand due to the fact that most Americans are working from home and not driving as crude oil prices are near an 18 year low as well and that situation is not going to change in the month of April so there is still short-term weakness for this commodity in my opinion.
The next major level of support is around the 3.20 area and if that is broken I think we can head down to the 3.00 level as spring planting will start in the next couple of weeks as then weather conditions will be the main focus to dictate short-term price action.
The Midwestern part of the United States has not experienced a drought since 2012 as we are overdue for some type of weather problem, however if that does not occur with 97 million acres being planted this market could produce another record crop which would depress prices for sometime.
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