Subscribe to RSS

Forex Technical Analysis #C-CORN : 2016-02-05

Corn rises on import demand expectations

Corn prices rose on expectations of higher import demand due to a drought in South Africa, while Russia was considering limiting grain exports. At the same time exports from South America continued to grow with crop outlook uncertain due to dry weather conditions. Will the price of corn continue rising?

According to Commodity Futures Trading Commission data last week speculators turned bullish toward agricultural commodities for the first time in the new year with a net long position of 11648 contracts in the top 13 US-traded agricultural commodities. The sentiment improved on expectations of higher corn imports from South Africa due to a drought and lower grain exports from Russia, as well as oil price rebound. Meanwhile US Department of Agriculture January report of World Agricultural Supply and Demand Estimate forecast 53 million bushels lower corn production for 2015-2016 in US, the world’s biggest corn producer. Nevertheless the total crop at 13.6 billion bushels is estimated to be the third largest on record. USDA lowered the projected range for the 2015-2016 season-average corn farm price 5 cents to $3.30 – $3.90 per bushel because of weaker export demand as evidenced by the slow pace of shipments and continued strong competition from South American suppliers. According to International Grains Council, Argentine farmers have increased export sales of corn after the government of recently elected Argentine president Mauricio Macri removed or reduced crop export taxes and quotas, and let Argentine peso depreciate against dollar. While export and currency reforms boosted Argentine’s export supply of corn pressuring world corn prices, dry weather in country’s north east has hindered late sowings. Drought conditions may result in lower crops in the sixth biggest producer of corn, supporting the corn price. However, expected rainfalls this weekend may provide the much needed moisture for developing plants according to Commodity Weather Group forecast. This may boost Argentine crop outlook and limit price growth potential.

CORN

On the daily timeframe corn price has been rising roughly from the start of the new year. The RSI oscillator is also rising and hasn’t reached the overbought zone yet. The MACD indicator is above the signal line and the zero level which is a bullish signal. The Donchian channel is tilted upward, indicating an uptrend. The price is above the 50-day Moving Average, which is below the 200-day Moving Average but is edging toward it. This is also a bullish signal. We believe breaching the upper Donchian channel and closing above the 200-day Moving Average at 378.7 will signify continuation of the bullish momentum, which can be used also as an entry point. A pending order to buy can be placed above that level. The stop loss can be placed below the last fractal low at 366.7. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level at 366.7 without reaching the order at 378.7, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 378.7
Stop loss below 366.7

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

$30 Free No Deposit Welcome Bonus Campaign – Tickmill

$30 Free No Deposit Welcome Bonus Campaign – Tickmill(0)

$30 Free No Deposit Welcome Bonus Campaign to All new traders. $30 Free Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  $30 Free Welcome Bonus Offer Available to: All new traders Ending Date: 31 December 2017 Bonus Offer: $30 Free No Deposit Welcome Bonus

Get $2017 No Deposit Hot Bonus Promotion – FreshForex

Get $2017 No Deposit Hot Bonus Promotion – FreshForex(0)

$2017 No Deposit Hot Forex Bonus Offer to all new verified customers. The $2017 Hot No Deposit Forex Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 No Deposit Hot Bonus offers Available to: All New Traders. Ending Date: 30 April 2017 Bonus Offer: $2017 No Deposit Exclusive Hot Bonus

100% Real Money Cash Back Bonus Promotion – UFX

100% Real Money Cash Back Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion 2018 to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Cashback rewards bonus program Link:  100% Real Money CashBack Promotion Link:  $50 Forex No Deposit Bonus Promotion Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: 100% Real

$15 Cashback Rebate Bonus per Lot Traded – FBS

$15 Cashback Rebate Bonus per Lot Traded – FBS(0)

$15 Cash back Rebate Forex Bonus per Lot Traded to All new traders. $15 Cashback Rebate Forex Bonus service is unavailable for the clients, who registered their accounts via their partners. Link:  $15 Cashback Rebate per Lot Traded Link:  100% Forex Deposit Bonus Promotion Link:  100% Forex Deposit Bonus Promotion Available to: All new traders

100% Easy Welcome Deposit Bonus Promo – Trade12

100% Easy Welcome Deposit Bonus Promo – Trade12(0)

Free Daily Forex Trading Signals via SMS. EMAIL. SKYPE. WHATSAPP and 100% Easy Welcome Deposit Bonus Promo to your Live Trading Account, Free E-Books Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  Get Forex Free E-Books Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get 100%

$50 Forex Free No Deposit Bonus Promo Action – FortFs

$50 Forex Free No Deposit Bonus Promo Action – FortFs(0)

$50 Forex Free No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 Forex Free No Deposit Bonus Promo Action Link: $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus Promo

Get 25% Trading Credit Bonus up to $5000 – HYCM

Get 25% Trading Credit Bonus up to $5000 – HYCM(0)

25% Forex Trading Credit Bonus Promo available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: 25% Forex Trading Bonus Promo Available on your deposits to New Clients

100% Bonus to your first Deposit Up to $300 – AvaTrade

100% Bonus to your first Deposit Up to $300 – AvaTrade(0)

100% Bonus Limited Time Offer to your first deposit Up to $300. Start trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer:

Forex Live Contest Total Prize Pool $15000 – FxGrow

Forex Live Contest Total Prize Pool $15000 – FxGrow(0)

Live Trading Forex Contest. The Live Forex trading forex contest that is offered for ECN PLUS and ECN VIP live account holders. Link:  Forex Live Trading Contest Available to: All new trading account Ending Date: 7 April 2017 Terms and Conditions of the Clash for Cash- Live Trading Contest By applying for Cash for Clash

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories