Corn has seen some pullback action overnight and into this morning. A lot of this can be “profit taking” before the weekend from traders who have been long corn this week. On top of that, news of a possible trade war issue with Mexico should keep the corn market from moving higher today. Although, the market is showing signs of a possible 7-10 million acre drop in planting this season, which will eventually come back into play and support. December corn has now broken above $4.50 a few times but has failed to hold each time. To me, this is an indicator that producers like selling at these levels and locking their hedge. December corn has gained 32 cents this week and over 70 cents on the month. The weather forecast looking out to June 16th is showing most areas of the plains and Midwest receiving 4+ inches of rain still. The 14-day RSI reaching overbought levels at 80% should also keep the corn market contained most of today, but expect pullbacks to be shallow until we get a better handle on planting and weather moving forward. Resistance comes in at 448 and 454 while support hits at 425 and 408.\
Corn Jul ’19 Daily Chart
