Buy the Hump, Sell the Dump and Don’t Diddle in the Middle
Corn has been trading in a range of about 330-390 over the past three months, but today saw a turn to the downside. The high on the day for the December contract came in shortly after the open at 368, before the bears came charging in to force a close around 361. Corn did manage to close above its 25-day moving average at 360.28, even though it snuck below for a brief period at a low of 359. It is still several points above the 15-day moving average.
From a fundamental standpoint, Corn may have been following the lead of one of its grain complex brethren today, as news of Russian export tariff increases drove down the price of Wheat.
From a longer-term perspective, prices are still well below the highs of 431 seen last June. With shorter-term support and resistance levels at 330 and 390, the market is squarely on the fence. Should Corn break above the 389.5 mark set on September 27th, a bull market may be in the works. However, it is firmly in the “don’t diddle in the middle” stage right now.
Mike Tosaw, Director of Education
