SINGAPORE:CBOT May corn futures has a good chance of breaking above the $6.38-1/2 per bushel resistance level and rising into the $6.42-3/4 to $6.46-1/2 range.
A bullish continuation pattern is one in which the consolidation below the resistance begins to resemble a flat.
According to the flat, the previous uptrend that began at the low of $6.06-3/4 on March 10 may have continued toward $6.53. Once corn breaks $6.38-1/2, a more bullish flag will confirmed. It will indicate a higher objective of $6.65.
The grain’s supply outlook improved and demand expectations deteriorated on prospects of a global economic slowdown as a result of rate hikes from major central banks. Earlier,US Corn prices fell further below $6.2 per bushel, close to their lowest levels since mid-August.
However, according to the US Agriculture Department’s monthly World Agricultural Supply and Demand Estimates report, Brazil is anticipate to harvest a record crop of 125.0 million tons and export a record 52.0 million tons in 2022/23. In contrast to the government’s February forecast of 1.267 billion bushels, domestic end stocks of corn for the 2022/23 marketing year are estimate at 1.342 billion bushels. This means that US corn supplies will likely be greater.
On the other hand, as this year’s production has been significantly impact by drought, Argentine corn exports are anticipated to be 29.0 million tons in 2022/23, which is the lowest level since 2017/18.
As B-Trams Predicted On Mar 21, 2023 CBOT Corn May Surge into $6.35 to $6.38 Bushel Range
A break below key support at $6.30-1/2 could lead to a fall into the range of $6.22-1/4 to $6.25-1/2. Corn remains neutral on the daily chart, ranging from $6.27-1/4 to $6.38-1/4.
A move lower than $6.27-1/4 could open the way for a range between $6.09-1/2 and $6.15-1/2.
However, corn appears more likely to break $6.38-1/4 and rise into the $6.47-$6.56 range following its stabilization around $6.27-1/4.