Barchart analyst flags July corn futures as buy on shrinking stocks and food shortage headlines
Grain markets show bullish momentum as winter wheat hits daily limits, prompting comparisons to precious metals rallies.
Jim Wyckoff, an analyst at Barchart, has identified a potential buying opportunity in July corn futures (ZCN26), citing bullish momentum and fundamental drivers such as shrinking inventories and headlines regarding global food shortages. Wyckoff suggests that a move in July corn futures above the overnight high of $4.82 would confirm the buying opportunity, with an upside price objective of $5.25 or higher. Technical support is identified at $4.65, with a recommendation to place a protective sell stop just below this level.
The analysis notes that winter wheat futures (ZWN26) experienced daily limit gains on Tuesday, which has drawn attention from the investing marketplace. Some traders are comparing the potential movement in grain markets to major bull moves seen in precious metals markets, such as silver. The article references broader market trends, including shrinking ICE inventories supporting coffee prices and cocoa prices retreating as producers lock in higher prices.
Wyckoff noted that grain market bulls have shifted into a higher gear, supported by increasing headlines regarding the potential for global food shortages. The daily limit gains in winter wheat futures have grabbed the attention of the general investing marketplace, with traders and investors wondering if grains are going to be the next precious metals markets regarding major bull moves.
The piece includes standard disclaimers from the Commodity Futures Trading Commission (CFTC) regarding the volatile, complex, and risky nature of trading commodity futures and options. The author, Jim Wyckoff, states he does not manage any trading accounts other than his own and that the trades discussed are hypothetical. He emphasises that any trades discussed are hypothetical in nature and that investors must determine the size and timing of any trades they may initiate.
The content was originally published on Barchart.com and sourced via Yahoo Finance. Wyckoff stated that on the date of publication, he did not have positions in any of the securities mentioned in the article. All information and data in the article are solely for informational purposes.
