December corn futures (ZCZ25) present a value-buying opportunity on more price strength.

See on the daily bar chart for December corn futures that prices have made a solid rebound this week, after hitting a contract low on Monday. Price action early this week produced a technically bullish “key reversal” up on the daily chart, which is one chart clue that a market bottom is in place. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator has just produced a bullish line crossover signal, whereby the red MACD line has crossed above the blue trigger line.

I normally don’t like to trade against the existing price trend, but this is a rare exception. Reason: The corn market has absorbed the fundamentally price-bearish elements of nearly ideal growing weather in most of the U.S. Corn Belt, which may produce record U.S. corn production this year. The bearish uncertainty regarding U.S. trade relations with other major economies, including China, remains near the front burner. Yet corn prices have rallied this week, suggesting all that bearish fundamental news for corn has already been priced into futures. Separately, a bullish fundamental is that export demand for U.S. corn has been solid recently.

A move in December corn futures above chart resistance at $4.28 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $4.60 or above. Technical support, for which to place a protective sell stop just below, is located at $4.15.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.