Buy The Dip?

Corn (July)

Fundamentals: Corn futures ripped higher after the release of the report but have traded as much as 31 ¼ cents off those highs, in the early morning trade. US ending stocks for 2020/2021 came in at 1.107, this was below the average estimate and right at the low end of estimates. The market is quickly back to trading weather, which turned beneficial for the northern plains in the overnight/early morning, sending prices lower. The market will be closed the next two sessions, so we would not be surprised to see some of the losses erased as weekend weather uncertainty brings some premium back into prices. We expect to see gaps one way or the other come Sunday night.

Technicals: In yesterday’s interview with RFD-TV, we talked about the technicals taking a back seat to weather. As forecast change so will money flow. For those of you that are new to trading a weather market and watching forecasts, they change frequently, which is why we have been saying there will be plenty of opportunity for market participants on both sides of the market (buyers and sellers, bulls and bears). It is easy to say that, but the numbers illustrate it better. Since the Sunday night open, July corn has traded in a 48-cent range but was only up 3 ¾ cents from the Sunday open (as of yesterday’s close). We have traded 22 ½ cents higher, and 25 ½ cents lower. Bulls make money, bears make money, pigs get slaughtered. Despite the volatility, technical support and resistance levels remain intact for today’s session..........Click this link to read the FULL report and receive our daily commentary

Bias: