Corn prices facing technical hurdles

Corn prices facing technical hurdles

Corn bulls are hoping to see the market pulled higher by talk of possible production hiccups with Brazil's second-crop corn (too dry in some areas) and complications with the Argentine harvest (too wet in some areas). U.S corn exports have been strong as of late, but the bears are quick to point out the glut of supply the Chinese government is wanting to more aggressively liquidate.

Planters across the U.S. are aggressively rolling as the acreage debate continues with heated discussion. I personally believe we are going to see some big planting progress during the next two weeks. Remember, the U.S. farmer can easily get 20-30% of the U.S. crop planted during a week if they get a window of opportunity. I think it's still a bit too wet to see those types of numbers, but if the winds and heat start to pick up and we dry out a bit more, then 80% planted by mid-May will look to be a lock. 

As a producer, I still like the thought of dumping old-crop risk on the rallies. As for pricing more new-crop, I remain patient. We have a series of technical hurdles directly ahead of us that the market will be trying to clear in the next few weeks. Make certain you're paying close attention and adjusting your marketing strategies accordingly.  I should also mention that I have the DEC17 contract on my radar as prices are again trading just north of $4 per bushel.  As a spec I prefer being a longer-term buyer on a deeper break in price, so I remain on the sideline.

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