Technical analysis: Will the corn price retreating halt?

Recommendation for Corn: Sell

Sell Stop: Below 537.5

Stop Loss: Above 622.9

RSI: Neutral

MACD: Sell

Donchian Channel: Sell

MA(200): Buy

Fractals: Neutral

Parabolic SAR: Sell

Chart analysis

The #C-CORN technical analysis of the price chart in daily timeframe shows #C-CORN,Daily is falling above the 200-period moving average MA(200), which is rising still. We believe the bearish momentum will continue as the price breaches below the lower Donchian boundary at 537.5. A pending order to sell can be placed below that level. The stop loss can be placed above 622.9. 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

USDA downgraded nationwide corn crop condition rating for 2021 corn. Will the CORN price retreating halt? On Monday US Department of Agriculture released its latest Crop Progress Report indicating quality of the corn crop nationwide continued to deteriorate. USDA's weekly report showed that 65% of the corn crop nationally is rated good to excellent, down from 68% last week. That also compares to this time last year when 72% of the crop was in good to excellent shape. It also showed 6% of the crop nationally is in poor to very poor condition with conditions in the top corn producing states slipping, with Iowa’s growing conditions down 7 points. Conditions have deteriorated also in Illinois, Indiana, Minnesota Dakotas and Ohio. Lower supply expectations are bullish for corn price. However the technical setup is bearish for #C-CORN.

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