Have Corn Prices Bottomed ?

Corn Futures---Corn futures in the March contract is currently trading higher by 1 cent at 3.77 a bushel as the trade agreement known as USMCA will be ratified next week which is a bullish fundamental factor for corn, but it's having little effect on today's trade.

I am will be looking at a possible bullish position if prices break the 4 week high which was created on December 3rd at 3.85 while then placing the stop loss under the contract low which was hit on September 9th at 3.65 as the risk would be around $0.20 or $1,000 per contract plus slippage and commission.

In my opinion the risk/reward is in your favor as I do think the contract low will hold as I am currently sitting on the sidelines getting stopped out of soybeans in yesterday's trade as it looks like a bottoming out pattern has formed in corn. The crop progress report was released yesterday stating that 92% has been harvested still leaving 6 million acres in the ground as some of that will not be harvested until spring as this was an extremely unusual year due to the wet spring that we experienced.

Corn prices still trading under their 20 and 100 day moving average as the trend is to the downside so wait for the breakout to occur before initiating a bullish position as the volatility is at an extreme low as I don't think that situation is going to last much longer as we now are exiting 2019 and we will start to worry about the 2020 crop.

TREND: LOWER

CHART STRUCTURE: EXCELLENT

VOLATILITY: LOW

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