The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Bob Utterback has more than 26 years of experience and offers producers a disciplined approach to marketing.
The continued long liquidation due to lack luster exports and concern about the status of ethanol blender credits has continued to weight on the corn complex. The market started the week off on a negative tone and is expected to continue well into the First Notice Day. That’s the bad news; the good news is, since we are clearing the deck of a lot of weak longs, we are also allowing end users to get inventory bought at attractive values. This implies longs are moving into very strong hands. The March corn contract is trading right above a four-point uptrend support line. If this level is broken, it could move down to 50% of the total June to November rally which comes in around $4.84. This level of correction is not expected; but, if seen, we believe it would be an excellent buying opportunity for all feed buyers and anyone wanting to reown inventory.
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