Allendale's Research department took a look at multi-year corn rallies over these time frames, from 1971/74, 1977/80, 1987/88, 1994/96 and the present 2005/?
By looking at the table below, the present 2005/? Rally has gained 275% in value and reached the average length in time of 28 months and suggests futures may reach 5110. If using the maximum gain in value and length, Allendale suggests a target of 6110 could be possible. The most recent high for spot corn futures is 5794 or 31.5 cents from a maximum of 6110. Consider the upside potential of this technical based study versus the downside risk. The present percent gain in value is only second to the 1971/74 rally, short by 40 days and 41 days longer than the average. What are your thoughts? Has the present multi-year corn rally run its course or does there remain more upside potential? If you have comments or questions, please give Allendale a call at 1-800-262-7538.
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