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Is Corn oversold? A US/China Trade Deal to Boost Commodities; a Weaker USD could also Lift Commodities…

Aug 26, 2019 (13:15)

by John Knobel

Current Corn price $361.25 and trading relatively flat over the last 7 trading days;
Current price indicating price is technically oversold (Daily Chart) levels since RSI traded from below to above its oversold technical level 30 (see chart RSI signal)
Corn prices have dropped -24% from the June highs near $468.75 to current market price;
Us/China trade war ; stronger US Dollar have added downside pressure for Corn since June;

Trade Commentary: Corn price seen building a support base above the $358.25 level on the back of concerns reduced US corn supplies to be lower than what the US Department of Agriculture is forecasting. 11% upside potential towards a 38.2% June to August retracement level at $400 seen for longs provided Corn price can hold above the $358.25 support; with downside risk at support -1.2 % lower from current.

Source: FXGM / Bloomberg

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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