Have corn futures found a near term top or are futures just catching their breath before making another leg higher?
Transcript
Good afternoon. This is all over slow Blue Line futures coming to you from the Chicago Board of Trade with another episode of the two minute drill. I’ve got two minutes or less to break down a market or two that caught my eye in today’s trade or through the beginning of the week. But before we get into things, I do want to remind you if you’re not following us on social media, we would love for you to do so we appreciate your support on YouTube, Facebook, Twitter, etc. Just type in blue line futures. Again, hit like and subscribe and we appreciate your support. We put out a lot of great daily content for free not just to clients, but to our followers as well. So without further ado, we can go ahead and get this shot clock started. We got two minutes on the clock, we’ve got the corn market. And honestly over the last 48 hours, it has been remarkably uneventful. Yesterday in particular, I think we had seven consecutive months going out from the current may contract to the July of 2025. All unchanged today, very little change. But ultimately here I think what we’re seeing on the chart, as you can see, we’re just hitting our head against some resistance and catching our breath after this nice breakout move above trendline resistance as well as the 20 day moving average, which had caught a lot of people’s attention. And something as simple as trendline resistance and the 20 day moving average is so simple, that it almost become self fulfilling because so many people are watching it. On top of that we’ve got funds with a very large net short position, which does you know, provide some upward mobility if we get out above technical levels, it just naturally creates some short covering, especially this time of year, where we’re heading into spring planting and at least talk about the weather in the US. We had the wise day report last week called NAB on Tuesday. And now we’re talking about the end of the month quarterly stocks report as well as perspective planting. And that comes with the conversation around weather and weather is a bit of a concern for a couple areas. We put out an article this morning on one of our sister company’s website Blue Line egg hedge.com is corn set up for a springtime rally. We noted how important Iowa is. And the root zone soil moisture map showing some signs of concern. Now growing up in the Midwest, I do know that things do change quickly. But with funds positioned the way they are, this is a concern and I’m not sure so sure they want to be that short heading into the springtime planting season where weather is still an unknown so I wouldn’t be surprised to see additional upward mobility potentially up towards this 474 75 level if we can get out above 454 55. So that’s what we’re looking at. That should be about two minutes on the.if You want any other information on what we’re looking at here that article is posted on Blue Line ag hedge.com You can always call us to me directly 312-837-3938 Remember trading futures and options involves substantial risk of loss and is not suitable for all investors.