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

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