Mish’s Daily: Technical Monday: Corn Futures and ETF Worth Watching

2 weeks ago 92 views 5 min read

Michele “Mish” Schneider

Director of Trading and Education

MarketGauge.com

Mish’s Daily: Technical Monday: Corn Futures and ETF Worth Watching

Written by Michele ‘Mish’ Schneider

In the Outlook 2025 CORN, the ETF, is an honorable mention pick for this year.

I use a monthly chart in the report as a longer-term viewpoint. For CORN to regain a 6-7-year business cycle expansion or go through the 80-month moving average, the price to clear is $20.00.

The price of corn futures is influenced by a combination of supply, demand, and external factors.

There are 4 major supply factors to consider:

* Weather

* Acreage Planted & Yields

* Global Production

* Pests/Diseases

Corn futures were under heavy pressure last Friday but are bouncing back to start the week due to dryness in parts of South America coupled with broad strength in commodities.

The major demand factors are:

* Ethanol Production

* Livestock Feed

* Exports

* Industrial Use

Talk of potential softer tariffs and higher natural gas and oil prices are potentially giving corn support.

Economic & Policy Factors

* Exchange Rates

* Government Policies

* Interest Rates

The US dollar relaxed a bit while interest rates remained high.

Market & Seasonal Factors

* Speculation

* Seasonality

* Stock-to-Use Ratios

Seasonality is in corn’s favor. Marketing year (MY) to date shipments are now 24.49% above the same period in the 2023/24 MY. 

External Factors

* Global Conflicts

* Transport Costs

Currently, oil prices could remain a factor, as well as any dockworkers strike and the continuing volatile geopolitical situation.

Technicals

The chart above is a daily viewpoint.

On the Daily chart, CORN is in an accumulation phase although needs to confirm with another close above the 200-DMA.

CORN outperforms SPY. And the momentum indicator tells us that the bullish divergence continues while momentum improves.

18.85 is a good start as an area to clear.

The futures chart shows support at 445 near-term.

Should Corn futures clear recent highs around 460, it is possible to see a substantial rally in 2025.

The bigger question is though, if Corn and other grains rally in 2025, what are the implications for

1. Inflation

2. Tariffs and policies

3. Geopolitics

4. Impact of weather

5. Strain on the consumer

Educational purposes only, not official trading advice.

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