Technical analysis: Will the Corn price continue retreating?

Dmitry Lukashov IFC Markets

Recommendation for corn: Sell

Sell Stop: Below 514.

Stop Loss: Above 557.3 .

Indicator	Signal
RSI	Neutral
MACD	Sell
Donchian Channel	Neutral
MA(200)	Sell
Fractals	Neutral
Parabolic SAR	Sell

Chart analysis

The #C-CORN technical analysis of the price chart in daily timeframe shows #C-CORN,D1 is retracing up toward the 200-day moving average MA(200), which is rising itself. We believe the bearish momentum will continue as the price breaches below the lower Donchian boundary at 514. A pending order to sell can be placed below that level. The stop loss can be placed above 557.3. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental analysis

Traders expect China’s US corn purchases will miss forecasts while its domestic crop is expected to rise. Will the CORN price continue retreating?

Analysts are concerned China’s US corn purchases in 2021-22 may come up short of forecasts in light of China’s absence as a buyer since mid-May and its canceling of roughly 26 million bushels (mbu) of 2020-21 purchases in recent weeks. So far unshipped sales heading into the 2021-22 crop year are on order in the amount of 480 mbu. Additionally, the 2021-22 China’s domestic production is currently estimated to be up 7.3 million ton (MT), while the increase in corn use is projected at 5 MT. Expectations of lower Chinese corn imports and higher domestic supply are bearish for corn price. Reports that Russia and Ukraine corn crop is projected 11 MT higher this year with over 90% of that increase headed for the export market add to downside risks for #C-CORN.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.