May corn futures at the Chicago Board of Trade are trapped in a down-trending channel as seen on the chart. Bears do have downside near-term technical momentum on their side. Technical odds are decent that a near-term market top is in place. Bulls would gain better downside technical momentum by pushing prices below solid technical support at this week’s low of $3.96 1/2. For the corn market bulls to regain some fresh upside technical momentum, they will have to push May futures prices back above the solid trend-line resistance level of $4.15 a bushel.
click on the chart to enlarge
The next major event for the grain markets will be the Friday morning, March 30 USDA Planting Intentions report. That report carries extra significance this year due to the fact that sharply higher corn prices are likely to prompt farmers to plant much more corn acres, mostly at the expense of soybean acres. However, traders do not have a strong sense of exactly what corn and soybean acreage numbers USDA will come out with on March 30. Thus, look for a very active and highly volatile trading session on Friday, March 30, in the wake of the fresh USDA acreage numbers.
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