Corn futures in the May contract are unchanged this Monday afternoon in Chicago currently trading at 3.90, a bushel rallying off session lows as the market is now looking for some fresh fundamental news to dictate short-term price action as corn reacted bullishly off of the USDA crop report released last Thursday sending prices to a new multi-month high of 3.93 a bushel.
I have been recommending a bullish position in corn since January 24th and have added more contracts on multiple occasions and if you still long continue to place the stop loss under the 10 day low standing at 3.78 as the chart structure will start to improve on a daily basis, therefore, lowering the monetary risk as I still remain bullish.
The large money manage funds are now long 163,000 contracts and when we initiated this trade nearly 2 months ago they were short about 170,000 contracts as they now believe higher prices are ahead as they are also long soybeans as we await the planting intentions which will be released on March 31st as that is a highly anticipated report which will certainly send volatility into this market.
Corn planting starts in about 5 weeks as the volatility certainly will expand as we continue to crawl higher on a daily basis, but that will not be the case for much longer as I still think the May contract will cross the $4 level relatively soon as this is my only grain recommendation at the current time.
CHART STRUCTURE: EXCELLENT