Shorting corn during the day

Today corn was trading beautifly down without any noise or unnecessary moves; something which could not be said about soybeans contracts which traded quite nervously with huge spikes and big volatility. The same could be said about the wheat being quite volatile and unpredictable. Thus here I will cover only corn today as it is a very good example of why grains are most appealing for trading.


Corn Dec 2019 futures (ZC.Z19) opened at $3.67¼ per bu and most probably driven by export fears connected with Ukraine and South America lower prices compared to the US as well as winter storms across US corn states, the prices continued its downward quest from open to close as to settle at $3.62¾ per bu.

As it could be seen from the chart straight from the open there the price was pushed lower and once reached $3.66 bounced a little for a certain range. That's where grain traders draw resistance line and sit and wait in the side lines this line to be broken down. So once the price action broke that level and it confirmed it wouldn't return above, establishing it as a support, it'd been a good entry for a short trade. The same happened at $3.65 level. Again once that line was broken the price continued its downward trend without any noise or signs of rebounding. Taking this into account as well as fundamentals supporting low demand, today's trading day has shown a good and beautiful example of shorting corn contracts the easy way.

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