Corn is a staple crop for American farmers and a summer pleasure for family dining. Most of what you see growing by the side of the highway when driving through rural Ohio is feed corn, though. It is used for feeding animals and not nearly as sweet as what you get at the grocery store. That corn, along with soybeans, makes up the bulk of what farmers plant in the heartland. They follow price moves very carefully.
Right now is a time that all traders should be following corn. The chart below helps to explain why. It shows the price of corn on a weekly time frame over the last 3 years. Notice that the price fell precipitously through 2014. But then fond support and has traded in a wide range between 320 and 440 since. The majority of the time it has spent right in the middle, at about 380.
Every move to the extreme in the range has reverted back towards 380. And it looks ready to do the same now. The price of corn is coming up off of a bottom and pushed to a higher high Monday. And it has support for more upside from the momentum indicators. They show bullish turns with the RSI running up toward the mid line and the MACD about to cross up.Are you ready to harvest some gains in corn?