📉Corn price fell sharply due to negative demand and supply news
Yesterday's WASDE report was not as negative for the grains as one might expect. The USDA lowered its corn production projections in Brazil and increased China's import prospects. Today, however, new information appeared:
- Cancellation of some deliveries to China in the 2020/2021 season and to a lesser extent 2021/2022
- Profit-taking - corn is strongly overbought, the publication of a lot of data that increases liquidity
- Conab points to production of 107 million tons of corn in Brazil, against yesterday's USDA estimate of 102 million tons
- Falling oil prices reduce interest in ethanol
At the moment the corn has reached the volatility limit of 40 cents. Tomorrow, this limit is likely to be increased. Potential bearish engulfing pattern on the weekly chart. The nearest major support is located at 640 cents a bushel. On the other hand, corn has been extremely overbought in recent months. Source: xStation5
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