Overnight, December Corn was down ¼ cent at $3.26 ¼. The recent selloff lows was $3.14 ¾ made on July 22nd. The weather is perfect for growing at this time, and now if the dollar is beginning to rise, I would expect corn to break the July 22nd lows and push towards the $3.00 area. The directional movement indicators are bearish. I am looking for a price bounce to sell short corn in the next few days. Stay tuned.

Producers should be fully short futures contracts and put option strategies in corn at this time. Stay that way for now. The $2.90 to $3.00 area is the next good support level for corn. Below that, look for a downside test in the $2.50 area. Who knows. Just stay short until things change.

Aug. 10, 2009
David Hall