May corn continued to climb on fresh fund purchasing Tuesday. Corn and wheat are still trading in tandem while soybeans trend lower on continued technical action and South American soybean cancellation rumors.
Corn open interest is still rising substantially and is a clear sign that money is entering that market. Total open corn contracts of corn were up another 9,329, which totals 44,134 since Wednesday of last week! It is pretty clear from the intra-commodity swings that they have been buying corn and selling soybeans. The "managed money" has held a fairly massive long position in soybeans for a while now. With harvest ongoing in South America US soybeans may have a hard time finding support without more demand based stories.
Next target for May corn at $7.47 ½
May 2013 Corn
Next target for December corn at $5.69 ¾ (that’s the 50 day moving average)
December 2013 Corn
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