July Corn Drops to Near Longer-Term Chart Support

July 2010 corn futuresJuly corn futures at the Chicago Board of Trade on Tuesday dropped to a fresh seven-month low of $3.51 1/2 a bushel as the bears gained some fresh downside near-term technical momentum. Prices are closing in on longer-term technical support at $3.50 a bushel. Multiple closes below the key $3.50 level would produce more serious technical damage and would also open the door to the next major downside price objective for the bears: pushing and closing July futures prices below the contract low of $3.33 3/4, scored in September of 2009.
July corn futures remain in a four-month-old downtrend on the daily bar chart. It would take a close above solid technical resistance at the April high of $3.74 3/4 to jump-start the bulls and to suggest that the downtrend in corn prices has run its course. One positive element for the corn market bulls is the study of “seasonality” price patterns in corn futures, which do suggest prices will trend higher from the present timeframe into the August timeframe. Stay tuned! Jim Wyckoff

One Response to July Corn Drops to Near Longer-Term Chart Support

  1. SMU Cox MBA April 28, 2010 at 2:13 pm #

    Cheap corn will make Mexico happy and ease tensions all over. People who aren’t starving to death are less likely to go war.