The corn market (basis December) peaked on 6/2/09 at $4.7350. We were targeting $3.08 as a bottom in the corn market. On 7/22/09 the market made new lows at $3.1475. Due to the "cooler idea" summer weather potential for high yielding crop production, the corn market has been pressured to the downside. However, last week the USDA stated they were going to resurvey a number of corn states for a better idea of acreage. The thinking is that it will reduce the previously reported crop production estimate. This could cause corn to remain in a trading range for the next few weeks.
There is another side to the "cool ideal" growing weather. This could lead to an early freeze? Some are beginning to think there is a possibility for an early freeze. If so, we could be looking at a lower crop yield that would be bullish for the market.
Its always been said the two most powerful components to the grain market are weather conditions and exporting. If the world economy proves itself to start moving forward as the equity markets are currently perceiving, this could also be bullish for the market as more corn is exported.
On the upside the initial resistance is $3.28 to $3.33. If it breaks above this range, the next resistance level is $3.36 to $3.45. There is a major resistance at $3.60 to $3.69
The initial support level is $3.25 to $3.21. If the market breaks this level it will probably test the lows of last week.
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