Market Bottom Alert: Corn Prices Are Rebounding and More Upside Is Likely

Jim Wyckoff Barchart Tue May 20, 8:51AM CDT
Corn with green husk via Say-Cheese via iStock

July corn futures (ZCN25) present a buying opportunity on more price strength.

See on the daily bar chart for July corn futures that prices have rebounded from strong technical support levels located at the May low and the December and November 2024 lows. My bias is that the corn market has put in a market bottom and that prices will trend sideways to higher in the near term.

Fundamentally, the planting and early growing season in most of the U.S. Corn Belt has been price-bearish amid few problems. Yet, corn futures prices have seen an impressive rally from the May low. That’s a strong clue of underlying price strength in corn, with more upside likely. And more years than not, there is a price-bullish weather scare in the corn futures market during the spring and summer months.

A price move in July corn futures above chart resistance at $4.55 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $4.85 or above. Technical support, for which to place a protective sell stop just below, is located at $4.42.

www.barchart.com

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. 


On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.