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

See on the daily bar chart for the December corn futures that price action on Wednesday saw a high-range close after scoring a contract low early on. This is an early signal that the corn market bears are now exhausted. Also, the relative strength index (RSI) this week fell to an oversold level that in the past several months has accurately signaled a near-term market bottom is in place.

Fundamentally, it appears corn futures traders are bracing for the USDA to forecast a whopper U.S. corn crop in its monthly supply and demand report next Tuesday. Some very big average corn yield figures are being bandied about in the trade. This could be setting up the corn market for a “sell the rumor, buy the fact” scenario regarding the USDA report next Tuesday.

A move in December corn futures above chart resistance at $4.07 would give the bulls more power and it would also become a value-buying opportunity. The upside price objective would be $4.40 or above. Technical support, for which to place a protective sell stop just below, is located at $3.95.

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.