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Technical view: Corn bulls strong

New story on the website (click here) sees today's trade in perspective of 6 1/2 month up-trend, as

March corn futures hit a fresh contract and 2 1/2-year high of $6.66 1/4 a bushel. (Prices then tailed off on profit-taking pressure.)

 

"The corn market bulls have strong upside near-term technical momentum and there are no early technical clues to suggest a major market top is close at hand," according to the Dow Jones story.

 

"The next upside price objective for the corn market bulls is to push March futures prices above psychological resistance at $7.00 a bushel. The corn market bears would gain some fresh downside near-term technical momentum by producing multiple closes back below what is now psychological support at $6.00 a bushel."

 

Any thoughts on which direction we go, and how we market this trend?

 

-- John

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Re: Technical view: Corn bulls strong

With the worldwide crop struggles, the record demand, we have to keep levels high enough for a while to ration demand. The outside money flows into commodities makes for a very strong sector. It would not surprise me in the least to see a year or two of a $6-7 average corn price with swings of a $1.50 on either side of the range.  Who can survive a year or two of those prices? We may very well continue to see record cattle, pork, and oil prices may rise again. I can see prime ground in the midwest consistantly bringing $12,000-14,000/acre.  A blow off top, three years from now interest rates will be 10%+, we will have produced an enormous crop for a year or two, prices retreat to $3-4 as money flows elsewhere, land settles in at $8000. NAAAHHH, I was just teasin.............. 

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