This article is brought to you by:
CONSENSUS
AG SERVICES
201 Innsdale Terrace, Clovis, New Mexico
505-769-3300(March 16, 2000) CORN: Corn turned short-term trends higher, but major resistance around the $2.62 level basis the December corn may halt this rally for a minute? Weather forecasts for more rain throughout the Midwest may stop the advance until we get through the Planting Intentions report. Technically, if prices pull back and hold for a few days and then make new highs, odds favor another 20-cent rally taking December corn up towards the $2.82 level. Fundamentally, this scenario is not very likely unless dry weather continues into the April/May time frames? For now, it seems like most of the support is coming strictly from technical support. The fundamental support was coming from the dry weather pattern across the Midwest, but this may change if weather forecasters are correct. There is still time for just about anything to happen over the next few months? Predictions that La Nina is still strong has many analysts calling for a possible drought this summer. Keep in mind that the key word here is "possible." As we've mentioned in the past, there will always exist the possibility of drought during any year. Other than weather, prices will need to firm into planting if corn acres are to compete with soybeans. Soybean planting intentions are already expected to come in near an all time record? Higher corn prices could take some of these soybean acres if prices are high enough? This will be the main focus for the rest of the month! Planting intentions will be released around the end of the month. Analyst will continue to adjust their estimates the closer we get to reporting time!
SHORT-TERM TRENDS--May top at these levels?
LONG-TERM TRENDS--Weekly charts are up.
Bryon Fillpot
Hosted by:
CONSENSUS, INC. AND INVESTORS
CO-OP
1737 McGee
Kansas City, MO 64108
(816) 471-3862