Focus: Corn Demand Remains High
This year’s corn crop faces continued challenges as weather conditions have delayed plantings and threatened corn yields. Corn prices rose another 33¢ last week, setting a new high for the year. July corn closed Friday at $7.54 ½ per bushel. Prices could be pushed higher if the government report on Monday shows a significant reduction in planted acreage. A 60-minute chart of July corn (see chart) shows a strong advance during the first half of June, followed by a flag consolidation pattern. The very strong ADX (over 60) suggests bullish forces are still strong. ADX is currently rising with the +DMI (bulls) above the –DMI (bears), so the hourly uptrend favors higher prices.
Chart Courtesy of TradeStation.
Dr. Charles B. Schaap transitioned from health care to wealth care in the nineties. He is the author of ADXcellence —Power Trend Strategies and Invest with Success—Big Profits for Small Investors. Dr. Schaap is a commodity futures strategist and recognized authority in technical analysis of the financial markets. His website is www.adxcellence.com .
