The corn exchange traded fund is gaining momentum from its October lows as U.S. exports rise and China opens its market to GMOs.
The Teucrium Corn Fund (NYSEArca: CORN) has increased 21.6% since the October 1 low.
CORN is now trading near $27.5, a few cents short of its $27.7, or 38.2%, retracement of the April to October decline, writes Mike MacDonald for Investing.com.
MacDonald argues that the CORN ETF is consolidating and will be shooting for $28.25, the last significant weekly gap high from early July. CORN traders will also have to be mindful of the supporting $26.89 gap low, which could open up prices down to $26, according to MacDonald.
Currently, the corn market is strengthening on greater demand. According to the United States Department of Agriculture, private exporters revealed that 6.56 million bushels of 2014/2015 corn was sold to an unknown destination, Farm Futures reports.
Additionally, China recently lifted the ban on imports of genetically modified corn, potentially opening up a large market base for U.S. corn, reports Jack Freifelder for China Daily.
“The decision to lift the ban removes an obstacle that had basically shut off corn imports from the US, not only on corn but also eventually on DDGs (dried distillers grains),” Shawn McCambridge, a senior grains analyst at Jefferies Bache Commodities, said in the China Daily article. “This is something that could have had a long-term effect if the ban had not been lifted.”