Corn Prices See Potentially Bullish “Basing” Action

December corn futures at the Chicago Board of Trade have been trapped in a sideways trading range at lower price levels for over two months. This price action is forming a base at lower price levels, for which prices could soon embark on an uptrend. While the “basing” action of the past two months is a potentially bullish precursor to a fresh uptrend in prices, the corn market bulls still have some heavy lifting to do in the near term, to suggest prices can sustain an uptrend. There is strong overhead technical resistance located at the September high of $3.47 3/4 in December corn futures. A push and close above this key technical level would provide the corn market bulls with fresh upside technical momentum to better suggest that a market low and a seasonal “harvest low” is in place. Above that price level lies more chart resistance at the August high of $3.76 a bushel in December corn. On the downside, solid technical support for December corn is located at this week’s low of $3.10 a bushel and then at the contract low of $3.02. Major psychological support is located at $3.00 a bushel. Stay tuned!–Jim