Corn futures hopped above our top-tier resistance and near-term downtrend line in reaction to significant gains in U.S. equities. The hint of a stabilizing economy encourages investors the demand and consumption of grains could recover, sending Corn futures higher. The movement came on discouragingly low volume, leading us to believe that Tuesday’s rise could just be another bump in the road down. However, U.S. grain exports are still declining while our uptrend line is out in the distance. Therefore, although the Corn futures might see a nice follow through to yesterday’s gains, the medium-term downtrend is in place for the time being. We anticipate the continuation of the strong positive correlation between grains and U.S. equities until investors get more news on the supply side of the equation. Fundamentally, see resistance at $3.58/bshl, with 2nd tier and top-end resistances hanging at $3.60/bshl and $3.6425/bshl, respectively. To the downside, we find support of $3.545/bshl with 2nd tier and bottom-end resting at $3.525/bshl and $3.4875/bshl, respectively. Corn futures are currently trading at $3.56/bshl.
