On June 8 we saw a high of 4.09 in the dec17 corn contract with some heavy trading volume and open interest behind it. From there we saw a gradual decline until late June when prices picked up through the July 4th holiday (following USDA acreage reports) with a 12 month and year to date high on July 11th at 4.17. Much of this was reaction to weather vs fundamentals in those reports.
However, interest and volume were not at the elevated levels we saw back during the June high of 4.09. Also, the RSI was near 70 on the 10th and 11th approaching levels giving a potential technical indication of being overbought. This of course may just be the kind of volatility we expect in a weather market while there is probably somewhat firm fundamental support based on the late plantings, replants, and current crop conditions and lack of uniformity in the crop progress across the corn belt compounding the uncertainty about weather.
***This commentary is provided for descriptive and entertainment
purposes only and is not intended to be used for specific trading
strategies or interpreted to be investment advice. *****
No comments:
Post a Comment