Weekly and Daily Key Reversals, Plus More Demand for Corn out of ChinaPosted 12/04/2017 10:44AM CT |
In the past five months, China has bought more than double the amount of Ukrainian barley than in the entire previous year. China has bought 780,000 tonnes in the past five months. A combination of Chinese demand, a turn to a drier trend for Argentina and a potential smaller than expected Brazil crop could be enough to spark significant short-covering buying support ahead. A key reversal for December corn which was confirmed with a weekly reversal opens the door for fund traders to step aside. The EPA maintained the status quo in setting final quotas for how much refiners blend into gasoline and diesel. The mandate was set at 15 billion gallons for conventional renewable fuels for 2018, which was anticipated by the trade. In just ten trading sessions, open interest in corn went down 222,351 contracts. The COT reports as of November 28th showed non-commercial traders were net short 130,850 contracts, a decrease of 17,438 contracts for the week. A key weekly reversal is a strong technical sign that a low is in place. That added with potential production issues developing in South America and the shift to a strong corn importer from China may be factors which could spark some short covering. 3552 comes in as support with 3614 and 3646 as first two levels of resistance.
Corn Mar ’18 Daily Chart