Corn Testing Significant Resistance Levels
Corn
Fundamentals: Yesterday’s Crop Progress report showed that the U.S. corn crop is 94% planted, 1% ahead of expectations and 2% ahead of historical average trends. 78% of the crop has emerged with 73% being rated in good/excellent condition, 5% better than the average analyst estimate. Futures have brushed off the good conditions and are finding strength as concerns over dryer forecasts add back some premium to the markets.
Technicals: Corn futures opened last night lower but have found strength two cents above our first support and have rallied back into positive territory, taking prices back into our 4-star resistance pocket, 747-753. As mentioned in yesterday’s report “This is a pocket we would consider selling into as it provides a well-defined risk-reward setup, in our opinion.”. A break and close above resistance is your sign to take the L and look for another setup. Our next resistance pocket for July corn above 753 doesn’t come in until 769-773.
Bias: Neutral/Bearish
Previous Session Bias: Neutral/Bearish
Resistance: 747-753****, 769-773***, 789 ½-790 ½**, 800-803 ¾**
Support: 729-733**, 716-720 ½****
Fundamentals: Yesterday’s Crop Progress report showed that the U.S. corn crop is 94% planted, 1% ahead of expectations and 2% ahead of historical average trends. 78% of the crop has emerged with 73% being rated in good/excellent condition, 5% better than the average analyst estimate. Futures have brushed off the good conditions and are finding strength as concerns over dryer forecasts add back some premium to the markets.
Technicals: Corn futures opened last night lower but have found strength two cents above our first support and have rallied back into positive territory, taking prices back into our 4-star resistance pocket, 747-753. As mentioned in yesterday’s report “This is a pocket we would consider selling into as it provides a well-defined risk-reward setup, in our opinion.”. A break and close above resistance is your sign to take the L and look for another setup. Our next resistance pocket for July corn above 753 doesn’t come in until 769-773.
Bias: Neutral/Bearish
Previous Session Bias: Neutral/Bearish
Resistance: 747-753****, 769-773***, 789 ½-790 ½**, 800-803 ¾**
Support: 729-733**, 716-720 ½****