About a month ago, we flagged a buy signal on spot corn for clients. Corn has rallied about 10% since then and more upside is ahead. Corn prices have been a strong downtrend since mid-2012 declining to the same levels seen in 2009-2010 before the rally in 2011. Looking at the technical picture this may now be about to change. We consequently have a long term buy signal on corn (triggered by a depressed reading in the 18m RSI).

(click on pictures for better viewing)

130314_corn 1This signal has only gone off a handful of times since 1986 and has normally been associated with very strong returns on a 12 month basis. 2014 could be a good year for corn.

130314_corn 2