Corn Bulls Strong, Looking to Dollar for Direction

dec_corn2009.gifDecember corn futures at the Chicago Board of Trade have seen an impressive really the past few weeks. Prices are in an accelerating uptrend on the daily bar chart and this week hit a fresh four-month high of $4.03 3/4 a bushel. Multiple closes above major psychological resistance at $4.00 a bushel would be another bullish technical clue for corn futures. The next major upside price objective is pushing and closing December futures prices above strong technical resistance at $4.25 a bushel. It would take a push in December corn prices back below the last “reaction low,” located at $3.68 1/2, to negate the uptrend and suggest a market top is in place. Importantly, corn, like many other commodity markets, is being heavily influenced by a weaker U.S. dollar and rallying crude oil and stock index futures prices. If the dollar remains weak and stocks and crude continue to rally, then corn prices also have more room to run on the upside. If the dollar starts to show sustained strength and crude oil starts to back down from its higher levels, then corn futures prices will also very likely back down. Stay tuned!

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