SINGAPORE: CBOT May corn may retest the $6.43 per bushel resistance level; a break above this level could result in a rise into the $6.47-1/2 to $6.55-1/4 range.
Wave c, which began at $6.23-1/4, is the basis of the contract. This wave has the potential to travel to its 100% projected level of $6.55-1/4.
A head-and-shoulders inversion is developing. It is close to being confirmed. Once corn maintains a firm above $6.43 level, a more optimistic target of $6.75 will be established.
Due to strong export sales from the United States, cbot corn traded close to a nearly one-month high of $6.45 per bushel on March 24.
Corn sales reached a marketing year high in the week ending March 16th, up 23% from the previous week and 57% from the previous 4-week average, as a result of purchases from China, according to the most recent USDA Weekly Export Sales Report.
After Brazil predicted a record crop of 125.0 million tons and a record export of 52.0 million tons in 2022/23, corn fell to its lowest point since mid-August as a result of an improvement in the grain’s supply outlook.
Domestic end stocks of corn for the 2022/23 marketing year are estimated at 1.342 billion bushels, compared to the government’s February outlook of 1.267 billion bushels. At the same time, US corn supplies are likely to increase.
However, due to this year’s heavily affected production by drought, Argentine corn exports are expected to reach 29.0 million tons in 2022/23, the lowest level since 2017/18.