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Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
Corn technicians are digesting the fact the SEP13 contract has now made NEW lifetime contract lows. The question is will the DEC13 contract follow suit, targeting the $3.98 area (current contract low)? A sub-$4.00 print certainly sounds scary, but with the funds tendency to be "repeat performers," meaning they like to stick with what is working, I suspect most technical bounces will be meet with more selling pressure by the funds. Personally, I believe breaking prices below $4.00 in the DEC13 contract will be tougher than many are estimating. Below are few cards in the deck that may scare some of the bears and keep prices from breaking in any real hurry:
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