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

100% Real Money CashBack Promotion 2017 – UFX

100% Real Money CashBack Promotion 2017 – UFX(0)

100% Real Money CashBack Promotion 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 2016 Bonus offer: 100% Real Money

50% Deposit Bonus and 10 USD Free Bonus – Hirose UK

50% Deposit Bonus and 10 USD Free Bonus – Hirose UK(0)

50% Deposit Bonus Campaign Maximum Bonus Amount is Unlimited for all customers And 10 USD No Deposit Bonus for Binary Options Campaign is available for new clients who open a Binary Option Account. It’s that simple. Link:  $10 Binary No Deposit Bonus Link:  50% Deposit Bonus Campaign Available to: All new traders Ending Date: 31

$2017 Forex No Deposit Exclusive Bonus – FreshForex

$2017 Forex No Deposit Exclusive Bonus – FreshForex(0)

$2017 HotNo Deposit Exclusive Bonus Offer to all new verified customers. The $2017 Forex No Deposit Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 Hot No Deposit Bonus offers Available to: All New Traders. Ending Date: 15 January 2017 Bonus Offer: $2017 Forex No Deposit Exclusive Bonus Offer to

100% Bonus Forex and Binary Options- MarketsYes

100% Bonus Forex and Binary Options- MarketsYes(0)

100% Holiday Cheer Deposit Bonus 2016 Forex / CFD and Binary Options to all New Traders. MarketsYes is glad to offer prospective clients for every deposit up to 1000 USD/EUR/GBP a 100% Holiday Cheer Deposit Bonus Link: 100% Holiday Cheer Deposit Bonus 2016 Link:  $25 Free Bonus Forex / CFD & Binary Options Available to:

$10 Binary Options No Deposit Bonus – Hirose UK

$10 Binary Options No Deposit Bonus – Hirose UK(0)

$10 Binary Options Free No Deposit Bonus Campaign is available for new clients who open a Binary Option Account. It’s that simple. Link: $10 Free No Deposit Bonus Link: 50% First Deposit Bonus Available to: All new Binary Option Account Validity Date: 31 December 2017 Bonus Offer: $10 Binary Options Free No Deposit Bonus Campaign

$30 Free Bonus Plus 30% Deposit Bonus – Ayrex

$30 Free Bonus Plus 30% Deposit Bonus – Ayrex(0)

$30 Binary Options No Deposit Bonus to all New activated Clients. 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! This bonus allows you to profit without making an investment and trade binary options risk-free. Link:  $30

$50 Forex No Deposit Bonus Exclusive Offer – FortFS

$50 Forex No Deposit Bonus Exclusive Offer – FortFS(0)

$50 Forex No Deposit Bonus Exclusive Offer to New and Existing Traders. The $50 Forex No Deposit Welcome Bonus can be received within the promotional time period, from 28.11.2016 to 07.12.2016 inclusive. Link:  $50 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin Bonus Available to: New

$25 Countdown Forex Bonus Promotion 2017 – ForexTime

$25 Countdown Forex Bonus Promotion 2017 – ForexTime(0)

$25 Countdown Forex Bonus Promotion 2017 new and existing will be eligible traders. ForexTime is offering by receive a $25 credit bonus when they make a deposit of $300 into their accounts*. Link:  $25 Countdown Credit Bonus 2017 Link:  Loyalty Cashback Promotions Link:  $4 Cashback back for every lot Ending Date: 31 December 2016 Available

100% US NFP Bonus Promotion December 2016 – Xtrade

100% US NFP Bonus Promotion December 2016 – Xtrade(0)

Up to 100% Deposit Bonus Promotion to All New and Existing Customers. December 2016 US NFP Announcement Deposit NOW $1000 to $5000 and receive 100% bonus! Link:  $50 No Deposit Bonus Promotion Link: 100% Deposit Bonus Promotion Link:  Free Flight Tickets to Madrid Available to: All New and Existing Customers Bonus Ending Date: Valid 01/12

100% Welcome Bonus Plus Risk Free Trade – Trade12

100% Welcome Bonus Plus Risk Free Trade – Trade12(0)

Get 100% Welcome Deposit Bonus and 7-day risk free trade, Boost your trading with a free 100% Welcome Deposit Bonus to your Live Trading Account. Link:  Get 100% Welcome Bonus Link: 50% Exclusive Deposit Bonus Available to: All new clients Ending Date: 31 December 2016 Bonus Offer: Get 100% Welcome Deposit Bonus Plus 7-day risk

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