US export sales were stronger than forecast while quality ratings declined last week. Will the corn price continue rising?

On the demand side US corn export inspections improved slightly last week compared to the one previous the last, rising to 18.4 million bushels from 16.6 million bushels up due to heavy buying from Mexico. On the other hand USDA crop progress report Monday reinforced supply concerns: quality ratings fell another point to 56% in good-to-excellent condition. And harvest is moving slower than expected, with 15% completed as of October 6. Higher demand and lower expected crop is bullish for corn prices. Today’s US Department of Agriculture monthly World Agricultural Supply and Demand Estimates report may be a downside risk in case of higher crop supply estimates.

CORN

On the daily timeframe the CORN: D1 has been rising after closing above the 200-day moving average MA(200).

  • The Parabolic indicator has formed a buy signal.

  • The Donchian channel indicates uptrend: it is narrowing up.

  • The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.

  • The RSI oscillator is above 50 level and has not reached the overbought zone.

We expect the bullish momentum will resume after the price breaches above the upper Donchian bound at 401.5. A price above that level can be used as an entry point for a pending order to buy. The stop loss can be placed below the fractal low at 388.3. After placing the pending order, the stop loss is to be moved to the next fractal low, following Parabolic signals. By doing so, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (388.3) without reaching the order, we recommend canceling the order: the market sustains internal changes which were not taken into account.

 

Technical Analysis Summary

Order Buy
Buy stop Above 401.5
Stop loss Below 388.3

 

 


 

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

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.

 

EUR/USD News

GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.

GBP/USD News

USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.

USD/JPY News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Gold consolidates in a range below $1500 mark

Gold extended its sideways consolidative price action on Tuesday and remained confined in a narrow trading band, below the key $1500 psychological mark.

Gold News

Forex Majors

Cryptocurrencies

Signatures