Corn futures rallied to end the week, will it last?
Corn futures are positioned to retest 50-day, 100-day and 200-day moving averages. Oliver Sloup examines.
May corn was 11 ¼ cents higher settling at 643. That’s 8 ¾ higher for the week. The new crop December contract tacked on 8 cents, settling at 560 ¼. Today’s rally and close was constructive on the chart, which keeps the door open for the cluster of major moving averages from 657-662.
May soybeans were able to recoup some recent losses today, with the May contract settling 8 ¾. This trimmed losses for the week to 48 ¼ cents. The new crop November contact was 15 ¼ cents higher, settling at 1274 ¼. Today’s rally brought the RSI to 30.39, which is fractionally higher than what would be considered to be oversold. Was today’s move a relief rally or is it sustainable? TBD. As mentioned in this morning’s report, sharp selloffs like this are often met by sharp relief rallies.
May wheat staged an impressive day, rallying 26 ½ cents to settle at 688 ½. This trimmed losses for the week to 22 cents. Today’s high was 700 ½. The Bulls will want to see consecutive closes above here to encourage a bigger relief rally.
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