December corn futures saw a rally during the first half of October that pushed prices well up from what is now strong technical support at the early-October low of $3.35 a bushel. However, prices have backed off just recently and are now right in the middle of a well-defined trading range between $3.35 and strong overhead technical resistance and near the September high, at the $3.90 area. My bias is that December corn will stay within this well-defined trading range until the contract expires. However, the weakening technical picture in the wheat futures market is likely to limit the upside price potential in corn, in the near term.
click on the chart to enlarge
Corn futures and the rest of the grain futures markets will also continue to keep one eye on the key “outside markets”–gold and crude oil. Any bigger tandem moves in gold and crude oil prices will likely find corn and the grains prices wanting to be pulled in the same direction. Stay tuned!–Jim
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