Can Grain Markets Remain Strong This Week?
Grain markets had an impressive move here last week but are flat to softer as we start a new week of trade. Can the rally continue or is the rally due for a pause?
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Corn
Friday’s Recap
July Corn futures closed the session at a one month high of 497’0 Friday, gaining 8’2 (1.69%). Total volume was a heavy 746,378, with July seeing 275,411 done. Combined open interest rose 3,421 (0.20%), with July gaining 33,693, or 5.82%, to 612,497.
Technicals
May corn futures have strung together an impressive winning streak but are on the verge of breaking that today with slightly lower price action to start the week. First major resistance to start the week comes in from 493 1/2-497 1/4, a move out above there and we could be talking about a retest of contract highs at 518 3/4. Keep in mind that the shot clock is winding down on the May contract, so if you’re considering establishing a position for longer than two weeks, you may want to look at July the July contract. On the support side, the Bulls want to defend 483 3/4-488 1/2 to prevent a round of profit taking.
Technical Levels of Importance
Resistance: 493 1/2-497 1/4***, 504 1/2**, 510-512***
Pivot: 483 3/4-488 1/2
Support: 472 3/4-473 1/2***, 454 1/2-457 3/4***
Popular Options
The May OCD 460 put saw the most changing hands with 10,225 contracts done. Options with the greatest open interest are the July 500 call with 38,424, and the Dec 400 put with 23,884.
Volatility Update
Corn implied volatility was sharply higher as CVL gained 1.5 to end the day at 22.03. Dropping 1.80% to a one month low, historical volatility (as measured by the 30-day) ended the session at 17.64%. The CVL Skew ended the session sharply higher, adding 0.78 to close at 1.45, a one week high.
Seasonal Tendencies Update
(Updated on 4.14.25)
Below is a look at historical price averages for July corn futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results).
Commitment of Traders Update
Friday’s Commitment of Traders report showed Funds were net sellers of about 3.2k futures and options contracts, shrinking their net long position to 53,576.
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