Big Picture look at Corn Market structure
Current Market Structure: **Sensitive, with extreme bandwidth** (IMO) The current Domestic and World; Supply & Demand numbers,paired with recent inflationary threats support a price base range from 4.75 to 5.15. There are to many variables that could change the fundamental picture and that is what this chart and the extreme bandidth is trying to tell us. 2014-2020 that was a 3.75 base. If the Market went to far above or below 3.75, eventually it came back to it.
Resistance above the 5.75 area at 6.50 - 7.35. **5.75+ is an area that some pricing and protection should be encouraged
Major Support is the 5.15 to 4.75 area. **Many 22’ break evens are coming in at this range. Eventually price will return to this area.
Risk is 4.00-3.80 range with further extreme risk at 3.00. We traded a 6 year range from 3.00 to 4.50, someday there could still be a pull back to that area
**This is a continuous front month chart, new crop (currently Dec 22’) targets should be considered when front month futures hit target areas…
Resistance above the 5.75 area at 6.50 - 7.35. **5.75+ is an area that some pricing and protection should be encouraged
Major Support is the 5.15 to 4.75 area. **Many 22’ break evens are coming in at this range. Eventually price will return to this area.
Risk is 4.00-3.80 range with further extreme risk at 3.00. We traded a 6 year range from 3.00 to 4.50, someday there could still be a pull back to that area
**This is a continuous front month chart, new crop (currently Dec 22’) targets should be considered when front month futures hit target areas…
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.