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Is $7 Corn Around the Corner?

Logan Burgess, of Grain Hedge

Are corn prices headed to $7?  It was just a few weeks ago that we were talking about $8, but corn futures broke a technical support level on Monday. Logan Burgess, of Grain Hedge, said $7 is likely, “Technically this market is not looking very strong. We have a 50 day moving average getting ready to move below the 100 day moving average, and we have not seen that in quite a while.”  He added he would not be surprised to see December corn drop to the $7 mark, “I think we would find good support at that level.”  December corn put in a low of $7.12 during the open outcry session on Monday.


Soybeans and wheat continued to move lower on the heels of Friday’s USDA production report which showed higher soybean production. Burgess says it will take demand news put a stop to the down side, “Keep an eye on exports. The USDA report did indicate an increase in soybean export projections, but we are going to have to see some follow through on that in the next few weeks.” Burgess told HAT he feels soybeans can find good support at the $14 level.


Jim Riley, with Riley Trading, said another factor in the current bear market is that the sharp sell-off has triggered margin calls, “I think we saw a lot of that in the Monday trade.”  He added nervousness about the U.S. economy has prompted some traders to pull out of the market and sit on the sidelines for now.  HAT market analyst Gary Wilehlmi said the market is in a very bearish frame of mind, “The close is always the only price that counts in technical scoring; and the markets, even in these days of crap shoot electronic domination, go to the orders — or, in the case of Monday’s trade, to support levels. Volume accelerated on the declines.”

 Interview with Logan Burgess, of Grain Hedge

[audio:https://www.hoosieragtoday.com//wp-content/uploads//2012/11/grain-hedge.mp3|titles=Interview with Logan Burgess ]