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| How low can corn go?
If we take a look at history, we spent most of the 2014 to 2019 time frame in a $1.50 range.
(Charts Below)
We usually found our highs somewhere around $4.40 and our lows would be anywhere from $3.00 to $3.50
Typically in markets, we see old resistance turn into new support.
Right now we are trading right above $4.40, right where we typically used to make our highs from 2014 to 2019. (the blue line)
When we had that breakout during 2020, where did we breakout from? We broke out from right around the $4.20 level. (the purple line)
So if old resistance does indeed turn into new support, seeing support and lows at this $4.40 level would make sense. If we were to continue lower, perhaps we’d look to test that area where we originally broke out in 2020, which would be around the $4.20 area.
Of course there is always the possibility we could go lower. As our +2 billion bushel carryout won’t be helping a rally.
Here is a write up from last week where I talked about this as well as what others in the ag industry are saying
Read Here: https://txt.so/41ZMso
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How low can corn go?
