Bulls Eat Some Corn
The December Corn contract (CZ7) closed at 383 today – an almost 2.5% increase from yesterday's 373. Corn has been trading sideways now for almost a year, leading many to believe it may be set to make a break one way or the other. The 375 mark has acted for both support and resistance lately.
On the daily candles, the 375 level appears to be somewhat of a magnet from either side. Last week 375 seemed to be resistance, but now that we have had some breaks in resistance, that same number is emerging as a support mark. Buyers came into the market yesterday when the market slipped below 375. The next level of support is around the 350 level. The moving averages were also split to start the day, but we are above both the 15- and 25-day averages now. The stochastic indicators are choppy at best right now, not giving us anything like the nice rounded showing we had seen in early October.
On the economic front, CPI, initial jobless claims, and Crude inventories will all be released tomorrow. Crude traders will be paying close attention to the inventory numbers after yesterday's announcement lowering estimates for the fourth quarter.
Mike Tosaw, Director of Education
