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360-289-9441(March 26, 2000) CORN: May corn "spoke" of dry conditions once again and prices rose 1-1/2 to 2-1/2 cents Friday with May closing at 2.32. Thursday's prediction for rain hurt the corn pit seriously, but less rain fell in Iowa than previously thought. Wheat's declining market may be hurting corn as it has the potential to compete for feed. Open interest in corn is quite high, over 500K contracts. Funds long position were under pressure from corn sales from China, purported to be cheaper than U.S. corn. Argentinean corn will soon be available as well.
May corn is still bullish, but barely. This past week it has taken it on the chin, moving from 2.45-1/2 to 2.37-1/4, Monday to Friday, well above the contract low of 2.09, but not far from a trend change call (2.34-1/4). Friday's close is just above the 18-day moving average. Sochastics are bearish in all time frames; RSI is in the 50's; direction is down; momentum is still up, but lightly. 9- and 18-day moving averages, a lagging indicator, is strongly bullish with wide divergence. The May made a bit of a recovery toward the close on Friday, moving 3 cents higher.
Martin B. Miller
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