Chicago Board of Trade Market News
Outlook: This section has previously highlighted the possibility of a setback in soy complex prices that could allow for limited downward pressure on corn contracts; which event could create a buying opportunity for end-users of corn. That anticipated price action seems to presently be in development.
Corn contracts have been carving out a narrow trading range for more than a month. The development of a horizontal trading range has occurred because many market participants share an opinion that the weight of potentially bullish scenarios in the global corn market is larger than the composite of potentially bearish developments. However, circumstance offered buyers no opportunity to purchase lower and it was too early in the season to give potentially bullish developments enough credence to drive prices higher. But now, the progression of time into March and a limited sell-off in corn contracts is a composite that could attract more attention.
The interest in buying corn contracts at lower price levels is unlikely to dissipate until after the planting intentions and progress are better defined; which conditions will become more certain around the first part of May. Until then, the outlook is that the probability for significant price movement in corn contracts is greater to the upside.