Global commodities markets have been falling for more than one month now at sometimes impressively fast pace. Energy, precious and base metals, and also agricultural products have declined by double digit percentages. It means therefore that there are potential technical rebounds on those markets and opportunities to take profit for more or less short-term corrections.
Corn may be one of those opportunities. In our last update on corn, on July 10, we were betting that $6.50 would be the main target but that a breakdown of the 100-day moving average would give some further bearish momentum. This is what happened, as the price action posted a low at $5.04 last week. It has however already slightly rebounded. Technical indicators show that the current rebound should drive the prices higher.
Corn prices yesterday fell recently to the lowest level this year after the US Department of Agriculture revealed that farmers were able to boost the country’s corn crop in spite of the damage generated earlier in the season by the worst flooding in 15 years.
