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Commodity Chart Of The Day

Daily Corn

(click image to enlarge)

Today's USDA report was supportive for maize with prices higher by nearly 5%, trading up to their 50 day MA. If you read yesterday's post, I did hint that on a bullish number, this would be the next stop. Aggressive traders can reestablish bullish trades on pullbacks that hold $7.55/bushel, in my opinion, in December. It was not the supply that surprised today but rather the demand numbers, and prices may need to trade higher from here to ration.

I had previously thought we had one more leg down to establish harvest lows, but after today's report, the low established just above $7/bushel in recent weeks may prove to be the harvest lows …stay tuned. I've shifted from bearish to neutral, and if we can hold onto today's gains, I will become more bullish.

U.S. Production:

Corn yield 122 bpa (122.84 bpa expected, range 120-127)

Corn production 10.706 bbu (10.601 bbu expected)

2012/13 corn stocks 619 mbu (648 mbu expected, 733 last month)

Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

Source: Commodity Chart Of The Day: Corn