During Tuesday’s trading session corn futures for delivery in May traded within the range 496.4-507.6 and closed at 506.9.
At 09:22 GMT today corn futures for settlement in May traded at 508.6 US cents per bushel, adding 0.2% for the day. The contract hit a daily high at 510.4 US cents per bushel at 04:30 GMT.
Fundamental view
Corn has advanced 18% so far this year, on increasing US exports, the worlds largest supplier of the grain and amid higher demand for domestic livestock feed after beef and pork prices surged to records.
The US Department of Agriculture will probably trim its forecast for corn inventories before this year’s harvest by 3.6%, the fifth straight cut, as demand increased after prices fell to the weakest level in 40 months in January, a Bloomberg survey showed. The government agency is scheduled to update its reserve estimates later today. If the forecast is cut in line with estimates or even by a larger percentage, this will certainly provide support to corn prices.
Technical view
According to Binary Tribune’s daily analysis, in case corn price manages to breach the first resistance level at 510.9 cents per bushel, it will probably continue up to test 514.9 US cents per bushel. In case the second key resistance is broken, the grain will probably attempt to advance to 522.1 US cents a bushel.
If corn price manages to breach the first key support at 499.6 US cents, it will probably continue to slide and test 492.4 US cents per bushel. With this second key support broken, the movement to the downside will probably continue to 488.4 a bushel.
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