Corn Futures---Corn futures in the December contract is ending the week on a positive note up $0.05 at 3.76, however prices settled last Friday in Chicago at 4.17 down about $0.43 or 10% for the trading week as prices are right near a 4 month low. Corn prices reacted very negatively off of the USDA crop report which was released on Monday showing that we might produce almost 14 billion bushels which was quite a shock while also raising carry over levels by 600 million as fundamentally speaking this market remains on the defensive.
In my opinion that was a shocking report as they basically stated that there was no damage done by the floods as I have to disagree with that, but the main problem is that there is extremely weak demand for corn and ethanol at the current time as that is what's really keeping a lid on prices.
Corn finally filled the price gap that was created on May 14th at 3.80 this week as I had been recommending a bullish position from the 4.00 level getting stopped out at the 3.80 level as I think it's time to move on and look at other markets that are beginning to trend.
Corn prices are now trading under their 20 and 100 day moving average as the trend is to the downside, however I will not take a short position as my only recommendation at the current time out of the grain market is a bearish wheat trade which continues its negative momentum.
CHART STRUCTURE: POOR
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