This makes the 5th day in a row December corn closed below the 20 day moving average. You might chalk most of this up to the uncertainty over trade talks (read Trump). I have a hunch that there is potential for recovery if this works out but others are having their doubts about when and how that might take place.
Fundamental analysis (trade wars aside) indicate solid support around $4 or higher, but if a trade war does unfold, we might adjust that lower on a fundamental basis. I think recovery (if there is no trade war) will be limited to the extent that corn demand is dampened as a result of the hit that livestock exports and demand for feed takes in all of this. Of course maybe China is leveraging Trump's rhetoric to drive down prices and then come in and buy up cheap grain. No trade war, and both Trump and China win. But that's a stretch.
***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. *****
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