December corn futures were under heavy pressure through the month of June and the first week of July, but over the last 10-days, the market has been consolidating in a sideways trade as it attempts to carve out a near term low. To illustrate this, we zoom in to a one-hour chart of December corn (below). You can see the market broke below the quarterly USDA report low
We lean optimistic on price from these levels but seasonal tendencies are tempering the expectations. Below is a look at 5, 10, 15, 20, and 30 year price averages for December corn and the chart speaks for itself suggesting that this historically has not been a great time to be bullish corn.
Below is a 20-year back test, showing how a short position would have performed from now until the end of August. We show this not as a recommendation but to illustrate different price action from year to year during the time frame listed.
Past performance is not necessarily indicative of future results.
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