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Mascoutah, Illinois | After watching corn get kicked around for the past five days including today, two positive things happened. We held support from the February 5th lows and this was the biggest volume day for the May corn contract. We traded nearly 150,000 contracts at the CBOT and I believe we may have seen capitulation today based upon the volume. If you were a trader, this WAS YOUR DAY TO GET OUT. I believe we now rally back to $3.90-$3.95 in May corn and I would again make sales. The overhead resistance at $3.95 will be difficult to overcome in the short term.
IF WE CLOSE ABOVE THAT NUMBER $3.95 IN THE NEXT MONTH OR SO, I WILL OFFER UP SOME VERY TECHNICAL PRICE POINTS.
I was looking back at some notes from last year on soybeans and started to see some similarities between when soybeans bottomed in 2009 and 2010. The number I am most concerned about in the May contract is $9.70. It is a key technical level for now. It is the first battle for the bears and the bulls if this rally in soybeans has legs like I think it does.
It hasn't felt good the past couple of weeks being on the long side but we are in a trading channel in corn with the $3.60 area as the bottom and $3.90ish as the top. Be patient if possible and wait for the push into the $3.90 area. Does it make you sick when you see prices falling everyday? It does me unless you are a bear. We will need a weather catalyst to hit a homerun with unpriced 2009 crops. My definition of a homerun in corn is $4.50. A lottery ticket would be $8.00 in corn. LOL!!!
Edited by djmcountryboy 3/10/2010 20:54
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Where are we now after today's report???
