It looks like corn could continue to fall.
If you've looked at a corn chart lately, you've seen a pretty dramatic move lower since the high it made in August.
Well, the main factor is seasonal. Indeed, after the huge drought-driven run-up we saw in the summer, it is only normal to see the prices come off in the winter.
So do I expect more pain for corn?
Yes and no.
On the bearish side, we expect that a Department of Agriculture tomorrow is expected to show a drop in exports. And the current trend channel is certainly pointing lower.
However, it has sold off a great deal, and I would need to see a bit of a relief rally before I consider it a good candidate for shorting.
I'd like to short corn a bit higher, at $7.10, and target a move down to $6.60.