Focus: July Corn
Corn prices fell 23.25¢ last week to close at $3.9925. This was the first time in eight weeks that corn has closed under the $4.00 level. Prices had been rising since the beginning of May, but they recently stalled out at the $4.50 level, the same resistance level at which rising prices were turned back in January. Prices have largely moved sideways since the beginning of 2009, and the weekly chart shows a consolidation pattern. Currently, the sellers are still in control as evidenced by the dominant –DMI (red arrow). Weather conditions remain favorable for corn, and a relatively stronger soybean market has pressured corn prices. Buyers have yet to find a strong reason to enter the market at this level. Further selling could test support levels at $3.70, $3.52, and $3.20.
Chart Courtesy of TradeStation
Dr. Charles B. Schaap 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.
