Interesting Chart Of The Day - #3 Corn

29/08/13 -- Not quite such a good match with the 30 year seasonal is this year's corn chart (click to enlarge), although the July/Aug dramatic slump is there for all to see.

If the remainder of 2013 is to mirror a "normal" year then the corn lows won't be in yet. The front month closing low for 2013 so far was USD4.55 1/4 set on Aug 13th. Note that a little late August/early September post harvest rally (similar to the one we have just seen/are in the middle of) is also a feature of the 30 year seasonal chart.

One interesting thing to note on all three corn, soybeans and wheat charts is that the magnitude of the peaks and troughs is much larger this year than "normal" over a 30 year period.

In other words, the charts may look similar, but the difference between the highs and lows of the year in percentage terms versus the starting point of 100% is much greater than it has been in the past.

I'd suggest that this is a recent trend, due in no small part to the large increase in volume being traded in Chicago these days due to the involvement of our old mates the funds and computerised in, out, shake it all about high frequency trading. The CME Group and CFTC would dispute that no doubt, praising the liquidity that it provides...blah, blah, blah.

I will attempt to prove them wrong with tomorrow's chart.

They've done studies, you know, 60% of the time it works every time.