Corn Futures—Corn futures in the March contract which is considered the old crop and was harvested last October is currently trading at 5.18 a bushel after settling last Friday in Chicago at 5.31 as prices are at one-week low.
At the current time I am not involved, but I’ve had a bullish bias towards the grain market for quite some time, however I am advising farmer clients to sell some of their cash crop as I think prices are getting a little long in the tooth and take advantage of this significant rally which is around 50% higher from the low which was hit on August 12th. Corn prices are still trading above their 20 and 100 day moving average as the trend is higher and if you are long a futures contract I would continue to place the stop under the 10-day low which stands at 4.89 as the chart structure will improve in 4 trading sessions lowering the monetary risk.
At the present time I do not have any grain recommendations, but I also think that beans may have topped out as well, however I’m certainly not recommending any type of short position as I think prices just need to digest the run up that we have witnessed over the last several months. Fundamentally speaking acreage estimates are beginning to surface ahead of the new crop planting cycle as IHS Markit raised their forecast for corn by 3.1m acres from the December forecast to 94.2m.
The chart structure at the current time is improving as the U.S farmer will certainly benefit as prices are still right near a 7 year high as that it’s a terrific thing to see as the farming community over the last several years has been depressed.
CHART STRUCTURE: SOLID
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