The technical action is positive and the corn market seems to have the fundamentals to attract significant fund trader buying in 2019. Traders are keeping an eye on SA weather this week as the dryness in Brazil could play a major role in this season’s crop. Nearly 2/3 of Brazil’s corn comes from its “second crop” that will be planted after soybeans are harvested. Traders are hopeful that the trade talks with China that begin today will go well. Once tariffs come down, traders believe China can purchase 2-5 million tonnes of U.S. Corn. Momentum studies are trending higher for corn, which could support a move higher if resistance is penetrated. The next upside target is 386. Resistance comes in at 384 ¾ and 386, while 1st support hits at 381 and then 378.
Corn Mar ’19 Daily Chart