Buy the Dip? W/ Oliver Sloup

Corn

Technicals (May)
Corn futures are chewing through first resistance near 440 which has opened to the door a grind higher into our 4-star pocket from 447 1/2-450. We would not be terribly surprised to see the market attempt to catch its breath near this pocket. If you're a producer who just a few weeks ago was wishing to get back to 450 to make some sales, opportunity is knocking. Options can be a great tool to use if you're wanting to keep the upside open, because if we can chew through 4-star resistance it could spark a bigger short covering rally with the next pocket coming in closer to 460-465.

Bias: Bullish/Neutral

Resistance: 447 1/2-450****

Pivot: 440-442

Support: 431 1/2-433 1/4*, 421-422

Fundamental Notes

• CONAB estimates Brazilian corn production at 112,753mmt, down from 113,696 last month and like soybeans, well below the USDA estimate, which is at 124.00.
• The agency cited an overall fall in the sowing area for the Brazilian corn, especially for second-corn's planted area, which is expected to fall by around 8% this year. Second corn, which is planted after soybeans are harvested in the same areas, is presently being sowed. Conab expects second-corn production to reach 87.349 million tons this year, 14.7% lower than last season and smaller than the 88 million tons predicted last month. -Reuters
• Weather in Brazil will continue to be monitored closely as their second crop develops. Weather will also become growingly important here in the states as we move into spring. As it stands right now, Iowa will be a focal point as drought conditions persist.

Seasonal Tendencies & Fund Positioning

Seasonal Tendencies & Fund Positioning Update: Corn – Blue Line Ag Hedge

See the full report: Cattle Futures Remain Resilient - Blue Line Futures

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