Corn: 06/21/2017


The chart above presents my analysis on the Corn market. It seems evident that we are under a similar cyclical circumstance as the choppy to sideways movement of the late 1990s and early 2000s. The cyclical structure is not necessarily favorable for corn at this current point in time, if you look at the similarities of the decline that occurred since the all time high with that which occurred from MAY of 1996, which was also an all time high then, you will realize that the declines are almost identical. We had a three wave sell off into the 9 year cycle low. The new SCC radar of TimeSeriesSCC suggests that this peak most probably occurred under a similar cyclical circumstance. Notice the choppy movement that occurred after the 9 year cycle trough in both cases, we have reason to believe that we are likely to experience choppy to sideways movement with a limit on upward price action for the next several years. The chart below presents my projection on the future course of corn prices.


As visible above, I am expecting corn to take on a slight dip in the near future after which a choppy sideways movement prior to having a sizable rally after the 54 month cycle trough which is expected to occur in the first to second quarter of 2019. I feel a little uneasy due to the divergence that corn is having with the general commodity market but I have learned to look at each market on its own and from a unique perspective. One can also feel a little uneasy with the divergent projections that we have on the Nikkei 225 and that of the DJIA and the European bourses. In the world of finance one needs to live with conflicting data knowing that correlation between different instruments can break down at any time due to any number of reasons which is why I have faith in all the projections presented to my subscribers on this blog in recent months.


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