We have been watching corn futures trade in a range since the late summer; however, this market tends to find a bottom at this time of year as harvest numbers come in.
At the moment, although corn has been building a base of support, it has yet to pick up any upside momentum.
Currently, the December contract around the $353 area. On the chart below, this market’s rally is hitting the bearish trendline in orange at $353.50 and the mid-October high at $354.00.
The pattern has been for corn to hit this area and then trade back into the grey zone on the chart where it has found buyers. However, if this market breaks over the trendline, we have identified upside levels to watch as targets and areas of potential resistance.
The first upside level is the $358.00 high made on the last day of September marked by the green line. We would expect at least modest resistance at this area on the first touch.
Next would be the $362.00 level which is an eight-week high made in early September, indicated by the orange level on the chart. We would expect moderate resistance at this level.
Traders should be aware of the following items on the calendar that could potentially affect this market in the weeks to come:
Oct 26: Export Sales at 7:30 a.m.; Oct 27: Last Trade November Grain Options; Oct 30: Export Inspections at 10 a.m. and Crop Progress at 3 p.m.; Oct 31: FOMC Meeting and First Notice Nov Grain Futures; Nov 1: FOMC Meeting; Nov 2: Export Sales at 7:30 a.m.; Nov 6: Export Inspections at 10 a.m. and Crop Progress at 3 p.m.; and Nov 9: Export Sales at 7:30 a.m and WASDE/Crop Production at 11 a.m.