Corn Technical Analysis Summary
Buy Stop։ Above 666
Stop Loss: Below 599
Corn Chart Analysis
Corn Technical Analysis
On the daily timeframe, CORN: D1 went up from the parallel channel. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if CORN: D1 rises above the last high and upper Bollinger band: 666. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the lower Bollinger line and the last 2 lower fractals: 599. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (599) without activating the order (666), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities – Corn
Investors fear that anti-Russian sanctions may cause an increase in the price of oil and grain on the world market. Will the growth of CORN quotes continue?
New anti-Russian economic sanctions of Western countries may be introduced due to events in eastern Ukraine. The share of Russia in the world export of corn is relatively small – about 4%. But the share of Ukraine is much larger and reaches 13-14%. Political risks of lower corn exports from both countries contribute to higher quotations. In addition, a rise in oil prices against the background of possible anti-Russian sanctions may increase the demand for biofuel (ethanol). Russia ranks second in the world in terms of oil exports. Saudi Arabia is in 1st place, and Iraq is in 3rd place. According to the U.S. Energy Information Administration (EIA), USA produces about 1.1 million barrels of biofuels per day (Fuel Ethanol & Biodiesel). About 30% of the US corn crop is used for this.