March corn futures at the Chicago Board of Trade on Monday hit a fresh contract low of $3.45 a bushel. Prices remain mired in a five-month-old downtrend on the daily bar chart, from the late-June contract high of $8.16 a bushel. The corn bears remain in full technical command and on Monday gained fresh downside technical momentum to suggest still more downside price pressure in the near term.
The next downside price objective for the corn bears is pushing and closing March corn futures below solid longer-term technical support at the $3.25 level.
For the corn market bulls to begin to regain some fresh upside near-term technical momentum they would have to produce a close above stiff overhead technical resistance at last week's high of $3.77 3/4.
The weekly continuation chart for nearby corn futures also shows prices remain in a steep downtrend from the June high. The next downside price objective for the bears is a challenge of longer-term technical support at the 2007 low of $3.08 1/2. Below that lies major psychological support at $3.00 a bushel.
The corn market and the other grain futures markets will continue to be influenced by the key "outside markets"--crude oil, the value of the U.S. dollar and the U.S. stock indexes. Corn will likely be supported on trading days when stock indexes and crude oil are higher, while the U.S. dollar is weaker. Conversely, on days when stocks and crude oil are weaker, while the U.S. dollar is stronger, the soybean futures market will likely see downside selling pressure.