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Kansas City | Corn technicians are closely watching the $5.11 support area, which held in place after early threats yesterday. I suspect the trade will take a couple of runs at the barrier before ultimately deciding on its true direction. From my perspective, with old-crop tightness, we may actually get stuck in a range between $4.90 and $5.50 until the end of June USDA Stocks Report. As for old-crop, I suspect prices will have a hard time sustaining any momentum over $6.60. From a producers perspective, if your still holding old-crop bushels, and the basis remains strong in your area, you have to look to sell more bushels on rallies beyond this level. Regardless of how tight cash supplies are, if spec's continue to unwind bull-spreads on the board it will be tough for old-crop flat prices to gain much upside traction. As we have learned the last several years, swimming upstream against "money-flow" is never any easy feat.
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Will today's corn rally hold???
