Massive long liquidation selling was seen overnight as trade war fears continue to escalate out of China. The overnight sell-off seems to be an over reaction to the potential news of a collapsing global economy. China will offer 3.8 million tonnes of corn from state reserves starting April 12th. The current US weather pattern looks to delay US corn planting until late April at the earliest, and this helped support the market yesterday. We expect to see two major weather events over the next two weeks that should bring rain to the south and snow to the north. This can play a major role in the Midwest getting their corn planted. States like Texas, Louisiana, Mississippi and Arkansas are all well ahead of schedule, but these states only make up about 4% of the total corn planted in the US.
With problematic weather to start the planting season in the US, along with the bullish planting intention number, the trend following traders are waiting to buy pullbacks. Key buying support comes in at 383 and 377 with 394 as major resistance. Keep $4 plus as a longer-term goal for bullish traders.
Corn Jul ’18 Daily Chart