Grain Express

Watch us on RFD-TV, today at 9:45 AM CT! Corn (March) Fundamentals: Corn futures rolled out of bed on Friday, testing limit down territory and catching many market participants off guard. Futures were off the highs by as much as 41 cents or 7.6% from the recent highs. As mentioned in our Tech Talk on Friday, you will drive yourself crazy trying to find a fundamental catalyst to explain big moves like this. This was largely technicals, money-flow, and options expiration. Friday’s Commitment of Traders report showed funds were net sellers of 24,097 contracts through January 19th (so, not including Friday’s blood bath), trimming their net long position to 336,087, which would be historically considered, over-extended.

Technicals: The market broke below our pivot pocket on Friday, in our Friday morning commentary we noted: “A break and close below this pocket could spark additional long liquidation from the over-extended funds. The next support pocket we have listed below this pocket is 497-502 ¾, this pocket represents the breakout point from last week’s USDA report.”. Admittedly, we were not looking for the washout to happen all in one day. Our 4-star support that we mentioned in Friday’s Tech Talk was tested and held overnight, we have that defined as 487 ¼-492. We do not mind buying against this support pocket on the first test, but Bulls need to defend it on a closing basis.........Click this link to read the FULL report and receive our daily commentary

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