Corn Market - Just My Opinion

Not much of a trading day on Tuesday, just a 2.5 3 cent range. The positive was that the corn market held onto its recent rally out of the hole. Some inter-market spreading (wheat vs. corn) tried to press prices early but flat price short covering was noted on the attempt to break. Prices have to challenge what I perceive to be good resistance; another 3-4 cents higher. the longer the corn market can hold on to the current rally I have to think more short covering will be seen. A dry bias in Argentina and continued rumblings that China may have bought some corn cargoes off of the PNW lend fundamental support.

Most interior cash corn markets continue to show a steady to higher bias. Processors continue to show the best bids followed by the Gulf. The December contract continues to tighten up while March forward spreads do little. Option expiration on Friday suggests Dec corn will continue to trade between $3.40 and $3.50 through weeks end.

Daily momentum indicators have clearly shifted higher. With that said one can expect resistance levels just above current price levels to be tested by weeks end. After that Im not sure the rally can sustain itself without testing the support that was established mid-late last week.

Daily Support & Resistance for 11/22

Dec Corn: $3.41 - $3.48

March Corn: $3.53 - $3.60

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