Is Corn Ready for an End of Month Rally?

Is Corn Ready for an End of Month Rally?
Is Corn Ready for an End of Month Rally?
Is Corn Ready for an End of Month Rally? Getty Images

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.

The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility. Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.

Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.