Market Trading Below 100-Day Moving Average in Corn | RJO FuturesPosted 03/13/2017 1:05PM CT |
May corn traded down to a low of 3622 overnight, and with the market closing below the 100-day moving average of 3676 on Friday, speculative longs could be in liquidation mode. There have been rumors of Argentine corn being sold to Mexico for summer shipment that has provided a negative tone for the market. The combined Brazilian and Argentine corn export total to 56.5 million tonnes is 20.6 million tonnes higher than last year. Export competition will be fierce in the months to come. The Brazilian forecast has no threat of long term dryness over the next two weeks, which should help early development of the Safrinha crop. The market was down 16.5 cents last week and closed right on long term trend support at 3644. The preliminary open interest was up 4,392 contracts on Friday. The latest COT data showed that managed money traders have reduced their net long by only 2,054 contracts to 80,081 contracts. The commitments of traders’ futures and options report for March 7 showed that non-commercial traders were net long 195,817 contracts, a decrease of 4,019. Support comes in at 3616 and 3590. December key support comes at 3812.