Corn Looking for Push from Friday’s USDA ReportPosted 02/05/2019 10:50AM CT |
March corn started the week higher, closing up off the low of 376^4 to end the day at 379^4. The corn market has been trading in a sideways range between $3.70 and $3.85 since October. That sideways channel has narrowed as the market searches for fundamental information to drive it one way or another. Friday we will receive a backlog of USDA data and the consensus of estimates is there will be positive news with a possible reduction of ending stocks. There is also support coming from anticipation that China will be a buyer of corn and other U.S. agricultural products if a trade truce is reached. China is currently at a production deficit of 26.5 million tons for the year making corn high on their list of products needing to buy. Corn export numbers for the previous week came in line with expectations. Trade above 383^0 would push the trend to the upside and momentum studies in the neutral zone would accelerate a move higher. Resistance comes in at 385^0 and then 390^0 with support at 373^4 and 368^0. A close below 376^$ will reverse the trend back to the downside. Look for the market to move higher on good fundamental news. The corn market, while experiencing choppy trade, has shown strength on days when other grain markets traded lower recently.
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Corn Mar ’19 Daily Chart