Analyzing Corn Futures: Key Trends and Risk Management Strategies | Aug 5, 2025

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Trent Klarenbach discusses the latest trends in the Corn futures market $CORN ( ▼ 0.45% )  $ZC_F ( 0.0% )  as of August 5, 2025.

He reviews the continuous monthly chart and highlights key technical analysis tools, such as the 200-month moving average and Fibonacci levels.

Trent analyzes recent market behavior, including the testing of support and resistance levels, and emphasizes the importance of effective risk management in trading.

He advocates for the strategic use of stops and explains how successful traders maintain small losses to achieve long-term success.

The presentation also touches on potential future price movements and the necessity of planning for various market scenarios.

Video Summary

• Monthly Continuous Chart (Moving Averages & Fibonacci Levels):

  • The 200-month moving average (purple line) has historically acted as both support and resistance.

  • A new monthly closing low of $3.81 was observed in July, with August prices dipping further to $3.605 and currently trading around $3.15.

  • A significant supply band is identified between approximately $3.15 and $3.81.

  • The theory that previous highs become new lows is being tested, particularly with the market breaking below the $4.40 to $4.00 range.

  • Fibonacci levels indicate that the August low found support at the 65% retracement level, leading to a rally towards the 50% retracement and the 200-month moving average, followed by continued selling.

  • A measured move from a previously identified head and shoulders pattern suggests a potential target of $3.00 per bushel, with further support at $2.75 and $2.45.

• Risk Management:

  • Current price action below all weekly and daily moving averages indicates a strong bearish trend.

  • Implementing risk management strategies, including cash sales, futures, and options, is highly recommended.

  • Emphasize that the initial stop-loss level is more critical than the entry price for successful trading.

  • Successful traders typically maintain a 50-60% win-loss record by strictly adhering to predetermined stop-loss orders to limit potential losses.

• Weekly Chart:

  • The weekly chart shows a prevailing downward trend.

  • The market appears to be heading towards a retest of the previous low at $3.61.

  • The Fibonacci level at $3.84 is a key area to monitor for price reaction.

  • Respecting the established downtrend is crucial; define clear exit strategies for erroneous positions or to manage cash sales with paper positions.

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Trent Klarenbach

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Nothing written, expressed, or implied here should be considered investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own due diligence.