April 22, 2009
CBOT July corn trends lower as bulls fade
Chicago Board of Trade corn futures on Monday (April 21) hit a fresh six-week low of US$3.70 a bushel. Prices are in a fledgling three-week-old downtrend on the daily bar chart as the bears have recently gained fresh downside near-term technical momentum.
Price action on Tuesday morning did see firmer prices amid a short-covering bounce from recent downside price action.
The next downside price objective for the corn market bears is to push and close July futures prices below the March low of US$3.54 a bushel. Technical support for July corn is presently located at Tuesday's low of US$3.77 3/4, at US$3.75 and then at this week's low of US$3.70.
For the corn market bulls to begin to regain some fresh upside near-term technical momentum they would have to push and close July futures prices above psychological resistance at US$4.00 a bushel. Below that key price level technical resistance for July corn is located at Monday's high of US$3.85 1/2, at US$3.90 and then at US$3.95.
