Corn market bulls power ahead
March corn futures at the Chicago Board of Trade on Thursday scored a fresh contract and 2.5-year high of $6.42 a bushel.
Importantly, bulls showed follow-through buying strength from the strong gains posted Wednesday, in the wake of a very bullish batch of U.S. Department of Agriculture data issued Wednesday morning.
A 6.5-month-old uptrend is in place for March corn futures, as prices have appreciated almost $3.00 a bushel from the June 2010 low of $3.56 3/4 a bushel. Technicals do suggest the path of least resistance for corn prices will remain sideways to higher for at least the near term.
The next upside price objective for the powerful corn market bulls is producing a close above chart resistance at $6.50, basis March futures. Above that lies major psychological resistance at the $7.00 mark. The record for nearby corn futures was scored in June of 2008, at $7.79 a bushel.
The corn market bears would gain some fresh downside near-term technical momentum by producing multiple closes below major psychological support at $6.00 a bushel in the March contract.
-By Jim Wyckoff, contributing to Dow Jones Newswires
(END) Dow Jones Newswires
January 13, 2011 10:54 ET (15:54 GMT)